Division 1Preliminary

## Part 1—Preliminary ### Division 1—Preliminary #### 1.1 Name of Regulations These Regulations are the Personal Property Securities Regulations 2010. ### Division 2—General application of the Act #### 1.3 Application of the Act to external Territories For subsection 7(3) of the Act, the following are external Territories: (a) the Territory of Christmas Island; (b) the Territory of Cocos (Keeling) Islands. #### 1.4 Interests to which the Act does not apply (1) For paragraph 8(1)(l) of the Act, the Act does not apply to a right or interest in personal property mentioned in section 260‑5 of Schedule 1 to the Taxation Administration Act 1953. (2) For paragraph 8(1)(l) of the Act, the Act does not apply to an interest in an authority, lease, licence or permit of any kind that is created under the Offshore Minerals Act 1994 or the Offshore Petroleum and Greenhouse Gas Storage Act 2006. (3) However, subregulation (1A) does not apply to an interest to which paragraph 8(1)(k) of the Act applies. (4) For paragraph 8(1)(l) of the Act, the Act does not apply to an interest if the grantor of the interest is a company that is: (a) incorporated under the Companies Act 1985 of the Territory of Norfolk Island; and (b) not registered under Part 5B.2 of the Corporations Act 2001. > Note: For the definition of grantor, see section 10 of the Act. (5) For item 6 of the table in subsection 8(2) of the Act, section 74 of the Act applies to an interest in personal property mentioned in the following provisions of the Act: (a) paragraph 8(1)(b); (b) paragraph 8(1)(c); (c) subparagraph 8(1)(f)(ii); (d) subparagraph 8(1)(f)(iv). #### 1.5 Interests to which the Act applies (1) For subsection 8(3) of the Act, the Act applies to: (a) a mortgage‑backed security; and (b) if transferred to a person in connection with the issue by the person of a mortgage‑backed security—a real property mortgage loan. (2) In this regulation: > mortgage‑backed security has the meaning given by section 286 of the Duties Act 2001 (Qld). ### Division 3—Definitions #### 1.6 Definitions In these Regulations: > ACN (short for ‘Australian Company Number’) is the number given by ASIC to a company on registration under the Corporations Act 2001. > Act means the Personal Property Securities Act 2009. > agriculture means personal property that is crops or livestock. > aircraft means: (a) a machine or craft that: (i) can derive support in the atmosphere from the reactions of the air, other than the reactions of the air against the earth’s surface; and (ii) has nationality and registration marks assigned to it under the Chicago Convention; or (b) an aircraft engine; or (c) an airframe; or (d) a helicopter. > aircraft engine has the meaning given by the definition of ‘aircraft engines’ in the Aircraft Protocol. > Note: The Aircraft Protocol contains the following definition of ‘aircraft engines’: > Note: “aircraft engines” means aircraft engines (other than those used in military, customs or police services) powered by jet propulsion or turbine or piston technology and: > Note: (i) in the case of jet propulsion aircraft engines, have at least 1750 lb of thrust or its equivalent; and > Note: (ii) in the case of turbine‑powered or piston‑powered aircraft engines, have at least 550 rated take‑off shaft horsepower or its equivalent, > Note: together with all modules and other installed, incorporated or attached accessories, parts and equipment and all data, manuals and records relating thereto. > Aircraft Protocol means the Protocol on Matters Specific to Aircraft Equipment, done at Cape Town on 16 November 2001. > Note: The Aircraft Protocol is a Protocol to the Convention on International Interests in Mobile Equipment, done at Cape Town on 16 November 2001. > airframe has the meaning given by the definition of ‘airframes’ in the Aircraft Protocol. > Note: The Aircraft Protocol contains the following definition of ‘airframes’: > Note: “airframes” means airframes (other than those used in military, customs or police services) that, when appropriate aircraft engines are installed thereon, are type certified by the competent aviation authority to transport: > Note: (i) at least eight (8) persons including crew; or > Note: (ii) goods in excess of 2750 kilograms, > Note: together with all installed, incorporated or attached accessories, parts and equipment (other than aircraft engines), and all data, manuals and records relating thereto. > all present and after‑acquired property means: (a) personal property over which the grantor has an interest at the registration time for the financing statement for a security interest or prescribed property; and (b) personal property acquired after the registration time for the financing statement for the security interest or prescribed property. > all present and after‑acquired property, except means all present and after‑acquired property, except for an item or class of personal property stated in the financing statement for the interest. > AML‑CTF Act means the Anti‑Money Laundering and Counter‑Terrorist Financing Act 2006. > ARBN (short for ‘Australian Registered Body Number’) is the number given by ASIC to a registrable body on registration under Part 5B.2 of the Corporations Act 2001. > ARFN has the same meaning as in the Corporations Act 2001. > ARSN (short for ‘Australian Registered Scheme Number’) is the number given by ASIC to a registered scheme on registration under section 601EB of the Corporations Act 2001. > ASIC means the Australian Securities and Investments Commission. > Australian Business Register means the register established under section 24 of the A New Tax System (Australian Business Number) Act 1999. > Note: The Australian Business Register can be viewed at http://www.abr.business.gov.au. > CCIV has the same meaning as in the Corporations Act 2001. > chassis number, for a motor vehicle, means the numbers or letters, or both, that: (a) are attached to or stamped on the vehicle’s chassis by the vehicle’s manufacturer; and (b) appears to uniquely identify the vehicle. > Chicago Convention means the Convention on International Civil Aviation done at Chicago on 7 December 1944, as amended by the Protocols mentioned in subsection 3A(2) of the Air Navigation Act 1920. > helicopter has the meaning given by the definition of ‘helicopters’ in the Aircraft Protocol. > Note: The Aircraft Protocol contains the following definition of ‘helicopters’: > Note: “helicopters” means heavier‑than‑air machines (other than those used in military, customs or police services) supported in flight chiefly by the reactions of the air on one or more power‑driven rotors on substantially vertical axes and which are type certified by the competent aviation authority to transport: > Note: (i) at least five (5) persons including crew; or > Note: (ii) goods in excess of 450 kilograms, > Note: together with all installed, incorporated or attached accessories, parts and equipment (including rotors), and all data, manuals and records relating thereto. > hull identification number, for a watercraft, means a number that: (a) is in a form and of a size, specified in one of the following Standards, published by the International Organization for Standardization: (i) International Standard No ISO 10087:1995 (E), titled ‘Small craft—Hull identification—Coding system’; (ii) International Standard No ISO 10087:2006, titled ‘Small craft—Craft identification—Coding system’; and (b) is permanently attached to, and located in the positions on, the hull of a vessel specified by a Standard mentioned in paragraph (a); and (c) is allocated to the watercraft by: (i) a registration authority of a State or Territory; or (ii) a person authorised by a registration authority of a State or Territory; or (iii) the watercraft’s manufacturer; and (d) appears to uniquely identify the watercraft. > manufacturer’s number, for an aircraft or motor vehicle, or an outboard motor to which regulation 9.1 applies, means the numbers or letters, or both, that: (a) are permanently attached to or stamped on a permanent part of the aircraft, motor vehicle or outboard motor by its manufacturer; and (b) appears to uniquely identify the aircraft, motor vehicle or outboard motor. > migrated security interest has the meaning given by section 332 of the Act. > original registration time, for migrated data registered under section 333 of the Act, means the time at which the security interest or prescribed property was first registered on the transitional register. > outboard motor means an internal combustion engine that: (a) has a propeller and a manufacturer’s number; and (b) is designed to be attached to a boat or vessel; and (c) is intended for use to propel a boat or vessel. > prescribed property means personal property mentioned in subregulation 5.3(1). > registered scheme has the meaning given by section 9 of the Corporations Act 2001. > registration time has the meaning given by subsection 160(1) of the Act. > responsible entity has the meaning given by section 9 of the Corporations Act 2001. > small aircraft means an aircraft other than an airframe, aircraft engine or helicopter. > sub‑fund, of a CCIV, has the same meaning as in the Corporations Act 2001. > vehicle identification number, for a motor vehicle, means a number allocated to the vehicle in accordance with national standards, as in force from time to time, made under the Motor Vehicle Standards Act 1989. > watercraft means a boat or vessel, other than a seaplane, that: (a) is used, or intended to be used, in navigation by water or for any other purpose on water; and (b) that has: (i) a hull identification number; or (ii) an official number, within the meaning of the Shipping Registration Regulations 2019, issued by the Registrar of Ships (within the meaning of the Shipping Registration Act 1981). > Note 1: For the meaning of watercraft, see also regulation 9.1. > Note 2: Several other words and expressions used in these Regulations have the meaning given by the Act, for example: ABN account after‑acquired property chattel paper crops financial property goods intangible property intermediated security investment instrument livestock National Credit Code negotiable instrument transitional register. #### 1.7 Meaning of motor vehicle (1) For the definition of motor vehicle in section 10 of the Act, personal property described in subregulation (2) or (3) is a motor vehicle. (2) The personal property: (a) is built to be propelled, wholly on land, by a motor that forms part of the property; and (b) is capable of a speed of at least 10 km/h; and (ba) has one or more motors that have a total power greater than 200 W; and (c) has any of the following: (i) a vehicle identification number; (ii) a chassis number; (iii) the manufacturer’s number; and (d) does not run on rails, tram lines or other fixed path. (3) The personal property: (a) is capable, when being towed by, or attached to, a motor vehicle, of travelling at a speed greater than 10 km/h; and (b) is a piece of machinery or equipment that is equipped with wheels and designed to be attached to, or towed by, a motor vehicle; and (c) has any of the following: (i) a vehicle identification number; (ii) a chassis number; (iii) the manufacturer’s number. #### 1.8 Meaning of security interest For paragraph 12(5)(b) of the Act, the extinguishment of a beneficial interest in an account or chattel paper is not a security interest. #### 1.9 Meaning of PPS lease (1) For paragraph 13(2)(d) of the Act, a lease or bailment is not a PPS lease if it is part of a pooling arrangement. (2) In subregulation (1): > pooling arrangement means an arrangement that includes one or more hire, lease or bailment arrangements, under which: (a) goods are pooled for the collective use, from time to time, of the parties to one or more hire, lease or bailment arrangements; and (b) none of the hire, lease or bailment arrangements, in substance, secures payment or performance of an obligation; and (c) possession of the goods can be passed between multiple users, without the prior approval of the owner, whether or not the goods are passed subject to conditions; and (d) like goods that are, by nature or usage of trade, the equivalent of the goods hired, leased or bailed under one of the hire, lease or bailment arrangements can be returned, in place of the goods originally hired, leased or bailed. #### 1.10 Meaning of investment instrument For paragraph (i) of the definition of investment instrument in section 10 of the Act, the following financial products are prescribed: (a) an Australian carbon credit unit, within the meaning of section 5 of the Carbon Credits (Carbon Farming Initiative) Act 2011; (b) a carbon unit, within the meaning of section 5 of the Clean Energy Act 2011; (c) each eligible international emissions unit mentioned in paragraphs (a), (b), (c) and (d) of the definition of eligible international emissions unit in section 4 of the Australian National Registry of Emissions Units Act 2011. ## Part 2—General rules for security interests #### 2.1 Taking motor vehicles free of security interests Incorrect or missing serial number (1) For subsection 45(1) of the Act, a motor vehicle described in regulation 1.7 is prescribed. (2) However, in the period that ends at the end of the month that is 24 months after the registration commencement time, a motor vehicle described in regulation 1.7 is taken not to be prescribed for subsection 45(1) of the Act if: (a) it is subject to a transitional security interest; and (b) before the registration commencement time, it was not possible to register the transitional security interest by serial number on a transitional register of a State or Territory that registered security interests in motor vehicles. Taking from prescribed persons (3) For subsection 45(3) of the Act, a motor vehicle described in regulation 1.7 is prescribed. #### 2.2 Taking motor vehicles from prescribed persons For paragraph 45(3)(b) of the Act, the seller or lessor of a motor vehicle is in a prescribed class if the seller or lessor: (a) holds a licence (however described) to deal or trade in that kind of motor vehicle; and (b) the licence is issued by a licensing authority in the State or Territory where the sale or lease of the motor vehicle happens.