CITATION  NSWSC 1023
JUDGE/S BRERETON J
Application by Alleasing Pty Ltd and Alleasing Finance Pty Ltd under Corporations Act 588FM to fix a later time for registration in respect of security interests granted by various customers, and under s293(1)(a) to extend the 15 business day period under s62(3)(b) for PMSI registrations. Registrations had originally been made against customers’ ABNs rather than ACNs, and Alleasing sought to correct this by new registrations.
The court made the order under s588FM, subject to a condition reserving the right of insolvency administrators to apply to discharge if insolvency occurred within 6 months. The court also allowed the extension of time for PMSI registrations. In doing so, the court accepted evidence that it was common for financiers taking security to undertake a ‘triple search’ of ACN, ABN and name, and so a ‘reasonably prudent financier’ would have been aware of the original defective registrations against the ABNs. That, and the fact that AllPAP securities are always liable to be trumped by later PMSIs, meant there was unlikely to be prejudice to other secured parties.
The order was subject to the condition that the holders of AllPAP securities be joined as defendants and given 28 days to contest the order.
The summary of the pertinent points in this legal case update has been provided by Steve Pemberton, Lawyer and Consultant, as an extract from his digest of PPSA cases.