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PERSONAL PROPERTY SECURITIES ACT 2009 - How it Affects OWNERS

29 Dec 11

Important RISA Notice - To All Owners Of Shares In Racehorses in Australia.

The Personal Property Securities Act 2009 under Commonwealth Government legislation is scheduled to come into effect in Australia on 30 January 2012 and it is extremely important that all racehorse owners immediately become familiar with the impact that this will have on the ownership of many assets including racehorses.

The Act will be supported by a single national online register of personal property security interests called the PPS Register whereby the ownership of assets such as racehorses can be recorded.

By making a registration on the PPS Registry the ownership of the horse is protected.  If you don't register your interest on the PPSA register whilst your horse is in someone else's care, a third party could register an interest over the horse and gain possession of it should the lessee or the carer strike financial trouble.

There are transitional provisions for current owners of racehorses from the date of the commencement of the registry.  Security interests created prior to this date of commencement are temporarily perfected for 2 years and do not need to be registered immediately.   There is no honeymoon period however on or after 30 January 2012 and so any new PPS Lease entered into, an option exercised on or a variation to a pre-existing arrangement from this date must be registered immediately.

For the purposes of integrity and administration of racing it will still be a requirement under the Australian Rules of Racing to register the name of the racehorse and ownership with the Registrar of Racehorses (RISA) and register syndicates, leases and transfers of ownership with the Deputy Registrar (Principal Racing Authority).

RISA's objective is to make all current and new racehorse owners aware of the PPSA legislation but it is recommended that you seek your own advice.

For further information visit RISA (Racing Information Services Australia) and PPSR (Personal Property Securities Register) or call 1300 007 777.

Notice From Dynamic Syndications


We have sought legal advice to ensure compliance with the new Act and have been proactive to ensure our understanding and the responsibilities of each co-owner in this regard. The PPSA and the PPS Register are relevant to the ownership of any thoroughbred racehorse where the ownership is comprised of multiple co-owners owning a share or shares, as is the case in all DYNAMIC SYNDICATIONS horses.

Consequently it's in all Dynamic Syndications owners BEST INTERESTS that they complete documents to be forwarded shortly and then, only upon receipt of completed documents from all co-owners, can Dynamic Syndications register the ownership of client's horses on behalf of each horse as a Secured Party Group on the PPS Register, in order to protect the rights of all our co-owners in each horse under management. Importantly it will protect owner's interests by ensuring priority is given to the co-owners over any third party debts that may be registered in relation to any co-owners shares.

Accordingly Dynamic Syndications is being pro-active in this regard and shortly will be writing to all co-owners advising about the new forms that need to be completed to comply with the new Personal Property Securities Act 2001 (Cth) ("PPSA"), and thus protect our client's rights and establish the entry of client's shares on the Personal Property Securities Register ("PPS Register")

It is vital that all owners understand that ANY owner that does not comply with the request of completing the new documentation, puts at jeopardy the whole co-ownership group and that would leave those owners exposed to legal compensation should from all other co-owners if an action was brought under the new Act by a third party creditor. This is why it is in all owners BEST INTERESTS to complete the documents and return promptly.

Racing NSW and RISA are attempting to notify either by mail or email / text all registered owners of all horses in Australia about the change and seeking owners co-operation to attend to this matter urgently. If any Dynamic client is unsure of what is required please contact our office and we will explain the position to you.

Disclaimer


The material on this notice is provided for general information only, and on the understanding that RISA is not providing professional advice on a particular matter.

This notice contains information that is intended to simplify the law for ease of comprehension. In addition, errors or omissions can occur in the preparation of notices. Therefore, before relying on the material, users should independently verify its accuracy, completeness, relevance for their purposes and that it is up-to-date.

Before any action or decision is taken on the basis of any material in this notice the user should obtain appropriate independent professional advice.

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