What it does
The Chattel Securities Act 1987 (WA) established a system for the creation, registration, priority, and extinguishment of security interests in chattels (goods) situated in Western Australia. Its primary operation was to provide a registration regime for security interests in motor vehicles, trailers, and prescribed goods, and to set rules for when a purchaser takes free of unregistered or inventory security interests. However, the Act has been substantially phased out following the commencement of the Commonwealth Personal Property Securities Act 2009 (PPSA). Part IIA, inserted in 2011 (No. 42 of 2011 s. 34), provides that the Act has no effect at and after the ‘registration commencement time’ (the time defined in PPSA s. 306(2) when the PPS Register became operational) except for a limited set of preserved provisions. Those preserved provisions are: sections 3A (Commissioner designation), 22 (Commissioner may cancel registration), 23 (details of entries), 24 (compensation for extinguishment of security interest), 25 (compensation where entry not shown on certificate), 26 (review by State Administrative Tribunal), 29 (appropriation), 30A (delegation), 30B (confidentiality), 30C (protection from liability), 30D (powers of investigation), and 31 (regulations) , plus any related provisions necessary for the continued operation of those primary provisions (s 3C(1)). Section 23 itself ceases to have effect on the day after the end of seven years beginning at the registration commencement time (s 3C(2)). The Commissioner may refuse to exercise registration functions during the pre-PPS transition period (s 3D) and after that period ends cannot exercise registration functions under sections 15, 19, 20, 21, or 22 (s 3D(3)). The Act itself is scheduled to expire when the Minister publishes a notice in the Gazette stating there is no reason for it to continue (s 3G). Before the PPSA, the Act governed rights between secured parties, debtors, and purchasers, and created a central register of security interests in ‘registrable goods’ (essentially licensed motor vehicles and trailers). The Part II priority rules (s 10) rank registered interests in order of registration, subject to the Corporations Act and any agreement between the holders. The Act also contains special rules for fixtures (s 6) and extinguishment of security interests when a purchaser buys goods in good faith from a debtor or dealer (ss 7-9). Compensation provisions allow persons to claim from the Commissioner if loss arises due to incorrect register entries or delayed registration.