Archives for April 2016

Purchase Money Security Interests (PMSIs) and super priority

The general rule for resolving competing security interests is, in a general sense, first in best dressed.  In other words, a perfected security interest will take priority over all other security interests perfected after it.  There are of course certain exemptions to this principle, with one major exemption being the “super priority” enjoyed by purchase money security interests (PMSIs). [Read more…]

Priority issues and the Personal Property Securities Register

The introduction of the Personal Properties Securities Act 2009 (Cth) (PPSA) changed the landscape for secured creditors (Secured Parties) upon a debtor’s (Grantor) insolvency or bankruptcy.  In short, the PPSA allows Secured Parties to register their interests in a Grantor’s assets on the Personal Property Securities Register (PPSR).  Under the PPSA, it is registration of a security interest on the PPSR that (generally) determines the priority of Secured Parties in the event that the Grantor becomes insolvent or bankrupt. [Read more…]

Vesting of unperfected security interests on liquidation – register or perish!

Under section 267(2) of the Personal Property Securities Act 2009 (Cth) (PPSA), a security interest granted by a company or individual (Grantor) in favour of another (Secured Party), may, if it is not previously perfected, upon insolvency or bankruptcy of the Grantor (as the case requires), vest with the Grantor and not the Secured Party.   In other words you may lose the property which is subject of the unperfected security interest! [Read more…]

Tax incentives for early stage investors in innovation companies

The Australian Government has tabled the Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 (Bill) to amend the Income Tax Assessment Act 1997 (Cth) (ITAA).  The purpose of the Bill is to encourage innovation and foster an entrepreneurial and risk taking culture.  According to the summary of the first reading of the Bill it seeks to address the difficulties faced in raising capital by many Australian Early Stage Innovation Companies (ESICs), by connecting relevant start-ups with investors that have both the requisite funds and business experience to assist entrepreneurs in developing successful and innovative companies. [Read more…]

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