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December 2011
Important Industry Notice – Personal Properties Securities Act 2009 and how it affects racehorse ownership.
The Personal Property Securities Act 2009 under Commonwealth Government legislation is scheduled to come into effect in Australia on 30 January 2012 and it is extremely important that all racehorse owners immediately become familiar with the impact that this will have on the ownership of many assets including racehorses.
The Act will be supported by a single national online register of personal property security interests called the PPS Register whereby the ownership of assets such as racehorses can be recorded.
By making a registration on the PPS Registry the ownership of the horse is protected. If you don’t register your interest on the PPSA register whilst your horse is in someone else’s care, a third party could register an interest over the horse and gain possession of it should the lessee or the carer strike financial trouble.
There are transitional provisions for current owners of racehorses from the date of the commencement of the registry. Security interests created prior to this date of commencement are temporarily perfected for 2 years and do not need to be registered immediately. There is no honeymoon period however on or after 30 January 2012 and so any new PPS Lease entered into, an option exercised on or a variation to a pre-existing arrangement from this date must be registered immediately.
For the purposes of integrity and administration of racing it will still be a requirement under the Australian Rules of Racing to register the name of the racehorse and ownership with the Registrar of Racehorses (RISA) and register syndicates, leases and transfers of ownership with the Deputy Registrar (Principal Racing Authority).
RISA’s objective is to make all current and new racehorse owners aware of the PPSA legislation but it is recommended that you seek your own advice.
For further information visithttp://www.risa.com.au/AboutUs/IndustryAnnouncements.aspx andwww.ppsr.gov.au or call 1300 007 777 or email enquiries toenquiries@ppsr.gov.au
Regards,
The Registrar of Racehorses
Disclaimer
The material on this notice is provided for general information only, and on the understanding that RISA is not providing professional advice on a particular matter.
This notice contains information that is intended to simplify the law for ease of comprehension. In addition, errors or omissions can occur in the preparation of notices. Therefore, before relying on the material, users should independently verify its accuracy, completeness, relevance for their purposes and that it is up-to-date.
Before any action or decision is taken on the basis of any material in this notice the user should obtain appropriate independent professional advice.
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