A deregistered company is a party to a security interest

You may need to contact ASIC if a deregistered company is a party to a security interest on the Personal Property Security Register (the PPSR).  

ASIC does not administer the PPSR or the Personal Property Securities Act 2009 (Cth) (the PPSA). Further information about the PPSR and the effect on your personal property can be found at ppsr.gov.au or you can consult with your lawyer.

What is a security interest under the PPSR?

A security interest is an interest (for the secured party) in personal property (i.e. property other than real estate) that secures payment of a debt or performance of an obligation (by the grantor). An example is a mortgage or charge over a company's motor vehicles and/or equipment.

Deregistered company is the grantor

Where the grantor is a deregistered company, ASIC does not oppose a secured party enforcing a security interest.

ASIC is aware that occasionally, the name of a deregistered grantor is the same as, or similar to, a company which has subsequently become registered. A PPSR grantor search by organisation name of the registered company may show a security interest granted by a deregistered company. ASIC cannot assist the registered company in this circumstance. ASIC recommends you visit ppsr.gov.au and search 'How the PPSR searches the database' and 'Previous securities registers and migrated data' or contact the PPSR directly for more information.

Deregistered company is the secured party

ASIC will not lodge a financing change statement on behalf of a deregistered secured party to end or remove a security interest.

If you believe that the security interest should be removed (e.g. because the loan has been repaid) the PPSA provides an administrative process for ending the registration of a security interest on the PPSR, which includes serving an Amendment Demand on the secured party. You can serve an Amendment Demand on ASIC's Property Law Group via property.law@asic.gov.au (please do not also send by post). The Amendment Demand must clearly identify the name and ACN of the deregistered secured party to enable ASIC to reply in detail.

For information on the Amendment Demand process please visit ppsr.gov.au, in particular Registrar's Practice Statement No. 4.

Both the grantor and secured party are deregistered companies

ASIC understands that only a party with an interest in the collateral (e.g. the grantor or another secured party) has standing to issue an Amendment Demand under the PPSA. ASIC will not take steps to end/remove the registration of a security interest despite both parties being deregistered, thus the security interest may remain registered. If you require the security interest to be removed, then you need to seek your own legal advice.

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Last updated: 24/01/2013 12:00