Hire purchase agreements, vesting and the constitution
By Leith Ayres and Richard Johnson
A recent decision by the Supreme Court of Western Australia has provided confirmation of the purpose and effect of a number of key provisions relating to transitional security interests, perfection, priority and vesting rules under the Personal Property Securities Act 2009 (Cth) (PPSA).
The case, White v Spiers Earthworks Pty Ltd  WASC 139 (Spiers), is the first Australian decision in which the court has been asked to consider whether section 267 of the PPSA, related to the vesting of unperfected security interests in the grantor upon its winding up or bankruptcy, could potentially constitute an acquisition of property other than on just terms. In the decision, the Supreme Court of Western Australia rejected an argument to that effect by the defendants and held that, by operation of section 267(2) of the PPSA, the defendants’ interests in collateral had vested in the grantor company immediately before the appointment of administrators.
It is the first Australian case to give substantial consideration to the interaction between the PPSA and the Western Australian Chattel Securities legislation that applied prior to the commencement of the PPSA. Although the end of the transitional period lessens the importance of some aspects of the decision, the case is important for the guidance that it provides in relation to the treatment of transitional security interests (and, in particular, the primacy of the PPSA over other pre-PPSA legislation that may once have governed issues of security interest registration), the characterisation of security interests and the operation of section 267. It also represents the most recent addition to the slowly expanding body of case law on the Australian PPSA…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
Australian government seeking more efficient delivery of public sector functions through contestability
On Monday 15 December the Australian government announced its ‘Efficiency through Contestability Programme’, as part of the mid-year economic and financial outlook.
The federal government has confirmed there will be ‘single-sided’ reporting for Phase 3B entities.