Personal Property Security Act
01 May 2002
Federated Farmers has produced an Issue Update on the Personal Property Security Act (PPSA) which comes into force today to provide information on how farmers can use the Act to protect themselves against the collapse of commercial enterprises such as processing plants.
"It is a historical reality that from time to time commercial enterprises fail and the protection of suppliers of goods to processors, millers and manufacturers has been largely non-existent, says Federated Farmers President Alistair Polson.
"Farmers who register a Purchase Money Security Interest (PMSI) over their stock will rank, as creditors, ahead of banks and other financiers in the event of a processor collapse.
"Realistically nothing will happen unless farmers demand the provision of a PMSI and reward those companies that provide them with their ongoing business.
"The Federation has drafted a basic security agreement for a PMSI that is available for sale by contacting 0800 FARMING (327 646). An Issues Update on the implications of the PPSA is available to financial members."