October 24, 2012 Leave a comment
The Personal Properties Security Register (PPSR) has provided new opportunities for business owners to secure loans made to their own companies. Since the Personal Property Securities Act 2009 came into effect on the 30 January 2012, many business owners have been putting in place loan agreements secured by registration on the PPSR. Doing so will ensure they are treated as secured creditors in the event of a future liquidation.
When lending money to a company, it is a good idea to have a written loan agreement. A written loan agreement which allows the lender to register their interest on the PPSR is better still. We have created a suite with precedents and instructions to do this.
The new PPSR Loan Agreements suite created by Kalde & Associates Commercial Lawyers provides the precedents needed to create loans secured by registration on the PPSR. It covers commercial loans to companies which are secured by registration over circulating and non-circulating assets. The precedent loan agreement creates of a security interest that may be attached and registered on the PPSR in accordance with the Personal Property Securities Act 2009. The product may be viewed by clicking here.