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Chattel Lease are Great

Chattel Lease are a great way to keep your assets safe.  Protect your assets with a chattel lease. Do you have assets?  Have you perfected title on the PPSR?  Protect your assets with a Chattel lease between the trading company and holding company.  You can have the assets in the holding company with a PPSR over them.  If the trading company goes into liquidation, the assets are safe.

For example, the trading company has 5 excavators.  Those excavators are generating the majority of the revenue for your company.  By setting up a holding company you can transfer the title of the excavators into the holding company using a CL.  You can then have PPSR registrations, PMSI’s on the excavators.  If the trading company heads into bad times the liquidators may come in.  In the first instance the assets of the trading company would be seized.  The excavators in this case would belong to the holding company and thus not subject to be seized.

Chattel lease are a great way to control your asset while using them in another part of the business but are not subject to being seized.

PMSIs must be perfected by registration. The financing statement must specify that the security holder claims a PMSI.  If the collateral is inventory, the PMSI must be perfected before the collateral is supplied to the grantor (if the inventory is goods).  Or before the security interest attaches (for other inventory).  If the collateral is equipment (not inventory), the PMSI must be perfected within 15 business days of the secured party supplying goods to the grantor.  Or within 15 business days of the security interest attaching (for collateral other than goods).
A properly-registered PMSI has super-priority over earlier registered security interests which are not PMSIs.

Finally, the above is a simplistic statement.  We can discuss the finer details with you and your circumstances. Chattel Leases are a great way to keep your assets safe.  Contact us now.

#Chattellease #PPSR #debtcollection #protectassets

Chattel Lease - Australian Business Contracts

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