After having been delayed for several years, Papua New Guinea’s (PNG) new Personal Property Security Act (PPSA) (in its entirety, the PPSPNG) and associated register are likely to commence in January 2016. These laws and its register are similar to Australia’s Personal Property Securities Act 2009 (Cth) (called the PPSA), but with a number of major differences.
Businesses trading in PNG, or with PNG enterprises, should take steps to understand and comply with the PPSPNG and how it operates in conjunction with the PPSA.
What does the PPSPNG apply to?
- Generally all assets other than land e.g. aircraft, motor vehicles, extracted minerals, inventory and plant & equipment;
- Intangible assets such as accounts receivable, copyright and licenses;
- “Security interests”, including court judgments;
- Suppliers, their customers, and assets in PNG, as well as some assets in Australia; and
- Certain fixtures to land and crops
How does the PPSPNG Register work?
- Just like the PPSA, if you fail to register, you risk loss of your assets;
- The PPSPNG register is online and can be accessed from anywhere in the world;
- The information required to verify and register is, in some cases, substantially different to the PPSA;
- It has a 180 days transition period, whereas PPSA had a 2 year transition period;
- Searches are free and registration fees are minor; and
- Registration fees are exempt for the first 180 days for existing compliant security interests.
What should I do before January 2016?
- Have your essential business agreements reviewed to ensure they comply, including terms of supply, building contracts, terms of trade and credit, loans, joint ventures, petroleum carriage and blending terms, precious metal (gold) refining agreements, machinery hire & lease agreements, and leases of premises;
- Review what clients or customers need to be registered against and what data you can verify or need to get verified; and
- Have suitable agreements “signed” – all relevant agreements must be properly “signed” before the start date.
- We will be offering webinars to assist businesses and their advisors to improve their understanding of the PPSPNG.
Please email Special Counsel, Peter Mills, firstname.lastname@example.org if you would like information on how to attend a PPSPNG webinar before Christmas or in early 2016.