The new Personal Property Securities Register (PPSR), to incorporate the introduction of the New Zealand Business Number (NZBN), requires immediate action.
Secured parties have until 30 November to ensure their financing statements contain the debtor's NZBN. Failure to do so could render the registrations invalid.
The replacement PPSR launched on 1 October 2018. The Ministry of Business, Innovation and Employment (MBIE) has transferred all financing statements and secured party group information to the new register.
The launch coincided with the commencement of the Personal Property Securities Amendment Regulations 2018. The Regulations require that all new and existing financing statements state the NZBN for debtor organisations (excluding trusts, partnerships and sole traders).
MBIE has attempted to update financing statements with NZBNs by transferring data from the various entity registers. However, some will require a manual update by the secured party.
MBIE has attempted to notify those secured parties, but we recommend that you review all of your financing statements to ensure the debtor's NZBN is included. To find a debtor's NZBN check the Companies Office or the NZBN website.
The High Court has previously said that the lack of a Company number is fatal to a registration.
MBIE has published a useful guide explaining how to use the new PPSR.
Our thanks to Robert West for writing this article.