Selling goods on credit
Do you have money owing to you secured over cars or your business or personal assets? Then this act will affect you.
The Act creates a registration, which gives priority over other creditors in respect of money owing to you by your customers for goods supplied or monies lent on security of cars, chattels and other personal property.
Warning - retention of title (romalpa) clauses in your terms of trade will not give you priority against receivers and liquidators of your customers without registration under the Act.
Main Points
- security interests over personal property will require a financing statement to be registered under the Act to gain priority;
- "Security Interests" are interests in personal property that secure payment of money or performance of an obligation.
- Security interests include chattel mortgages, charges, finance leases (any term), other leases (for more than 1 year), title retention arrangements in Terms of Trade or conditions of sale.
- Registration give you priority over unsecured creditors and all secured creditors of your customer who may have registered after you.
Get in touch with one of our lawyers to discuss further.