SPER registering PMSI’s

Anecdotally we are noticing an uptick in QLD State Penalties Enforcement Registry actions whereby personal property (like trucks and motor vehicles) are having security interests registered against them by SPER for relatively small debts (say less than $10k).

According to SPER, their enforcement action rights include the ability to register a security interest on the PPSR against personal property and real property (ie the family home or investment house). This right is said to be contained in s 110 of the State Penalties Enforcement Act 1999.

000

Notwithstanding that this section does not appear to have ever been tested in Court, what are you seeing? Do you think this would hold up, given the section does not appear to grant a circulating or non-circulating interest (or charge)?

If the security is registered within 6 months of a court liquidation, would it not anyway be voidable under s 588FJ of the Corporations Act?

Although this is big business for Government (see photo), I am not a fan of creditors (especially Government creditors) jumping the liquidation priority queue without commercially bargaining with the business or where it unfairly disadvantages other creditors.

0000

insolvency government svvoidables

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s