Deal with a security interest on the PPSR
We will help you manage PPSR security interests so your refinance can proceed without delay.
Refinancing a commercial facility sounds straightforward, but when existing security interests are recorded on the Personal Property Securities Register (PPSR), the practical steps can become complex quickly. The outgoing lender’s registration must be correctly discharged before the incoming lender will advance funds, and a mistake at this stage can create a priority dispute that derails the entire transaction. We assist borrowers, incoming lenders, and outgoing lenders to navigate PPSR registrations, discharges, and amendments in the context of a refinance so the transaction completes cleanly.
What is the PPSR and why does it matter in a refinance?
The Personal Property Securities Register (PPSR) is Australia’s national online register that records security interests over personal property (assets other than land). When a lender takes security over a borrower’s business assets, equipment, or receivables, that interest is registered on the PPSR to give it priority over other creditors and to make it enforceable in insolvency. When a facility is refinanced, the outgoing lender’s registration must be discharged and the incoming lender’s interest must be registered in its place. Mistakes in the order, timing, or form of these registrations can create priority disputes or leave the incoming lender with an unprotected position.
What happens to my existing PPSR registration when I refinance?
When you refinance, the outgoing lender’s security interests must be discharged from the PPSR either before or at the same time as the incoming lender registers its own interest. The incoming lender will typically not advance funds until it has confirmation that the outgoing lender’s registrations have been, or will be, removed. We coordinate the discharge and re-registration process to make sure the transaction completes without a gap in the security position.
What if my outgoing lender won't discharge their PPSR registration?
An outgoing lender is not entitled to keep a PPSR registration in place once their debt has been repaid in full. If a lender refuses to discharge, there are formal mechanisms available under the Personal Property Securities Act 2009 (Cth) to compel discharge or to register a correction. We advise on the options available and, where necessary, take steps to force the discharge so the incoming lender can take its position without delay.
Coordinated discharge and registration.
Clean transition for the incoming lender.
Dispute resolution if discharge is refused.
PPSR registration issues can derail a refinance, unless they are managed from the start.
The old lender's registration is still on the register — and it needs to go.
You are refinancing, and the new lender has confirmed funding in principle, but before settlement can occur, the existing registrations need to be discharged. The outgoing lender is slow to respond, the documentation requirements are unfamiliar, and any delay or mistake in the sequence could push the settlement date or create a priority problem the incoming lender is not prepared to accept.
- We will review existing PPSR registrations and advise on what needs to be discharged.
- We will coordinate with the outgoing lender to obtain discharge documentation.
- We will register the incoming lender's security interest in the correct form and order.
- We will advise on and manage priority risks throughout the refinance process.
Your refinance is ready to proceed, but the register is holding it up.
You have negotiated new financing terms with an incoming lender and the deal is effectively done, but settlement cannot proceed until the outgoing lender’s PPSR registrations are cleared. The outgoing lender is slow, the documentation is unfamiliar, and every day of delay has a cost. Meanwhile, the incoming lender has confirmed that it will not advance funds until it has a clean, first-ranking security position. You need someone who knows exactly how to move this from stuck to settled.
What's included in your PPSR refinance service
- Search and review of existing PPSR registrations.
- Discharge coordination with outgoing lender.
- Preparation of new security documentation for incoming lender.
- Registration of new security interest in correct priority order.
- Advice on priority risk management throughout the process.
What happens when PPSR registrations are mishandled in a refinance?
A refinance that is mishandled at the registration stage can produce exactly the problem it was designed to avoid. If the outgoing lender’s registration is not discharged before the new lender registers, or if a third-party creditor registers a competing interest in the gap between discharge and re-registration, the incoming lender may find itself in a lower priority position than it expected. Priority disputes are expensive to resolve and are almost impossible to fix retroactively after settlement. What felt like a routine refinancing step can become a significant legal dispute between lenders which leaves the borrower’s transaction in limbo and the incoming lender exposed to risk it did not anticipate when it agreed to fund the facility.
Here is how we move your refinance forward without leaving gaps.
We start by searching the PPSR to identify every registration that needs to be managed in the context of the refinance. We then coordinate with the outgoing lender to obtain the necessary discharge authorisations and prepare the incoming lender’s security documentation in the correct form. The timing of the discharge and new registration is managed carefully to avoid any window in which a competing creditor could register ahead of the incoming lender. By the time funds are advanced, the incoming lender has a clean, first-ranking, enforceable security position and the refinance can close without further complications.
We manage the register so the transaction stays on track.
Identify and review.
We search the PPSR and identify every existing registration that must be discharged or managed before the incoming lender's interest can be registered in priority position.
Coordinate the discharge.
We work with the outgoing lender to obtain discharge documentation and confirm timing so there is no gap between the old registration coming off and the new one going on.
Register and close.
With the register clear and the incoming lender's interest registered, settlement proceeds on schedule with the security position the incoming lender required.
Specialist PPSR lawyers who understand how priority works in practice.
We understand you want to know the cost, before we get started.
We will map out our process, from beginning to end, so you know what the journey will look like before you get started.
We will provide you with a clear and detailed Work Proposal covering each step along the way.
Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.
Our great lawyer guarantee
We want to be part of your team over the long term. We achieve this by adhering to these core principles:
Take the time
We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.
Share our knowledge
We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
Stick to our knitting
We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.
Work as one team
Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
Fair pricing
For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.
It's your show
We're not in this for our egos. We're in it for a front row seat to witness your success.
