Home » Personal Property » Timing of Registration for PMSIs Over Goods that are Inventory

 

S 62 of the Personal Property Securities Act 2009 (Cth) requires Purchase Money Security Interests (PMSIs) to be registered within strict time frames and in particular requires goods which are inventory to be registered prior to possession being delivered.

The recent case of Allied Distribution Finance Pty Ltd v Samwise Holdings Pty Ltd [2017] SASC 163  has clarified that even though a party may have possession of goods, the relevant timing for registration is when possession of the goods is delivered to a party in their capacity as a grantor of PMSI. This case found that the relevant PMSI had priority despite the goods already being delivered as the PMSI was registered before the goods were allocated to the grantor under the relevant agreement.