Renewal of Financing Statements on the Personal Property Securities Register (PPSR)

In New Zealand we have an electronic register of security interests in personal property which is used to provide security over assets other than land. This register is known as the Personal Properties Register (PPSR).

Any person or entity that takes security over personal property (known as a secured party) records their security interest in the personal property by registering a financial statement on the PPSR. For example, this might be done if you were to lend someone money secured over a car or boat.

A financing statement is registered on the PPSR for an initial default registration term of five years. Unless the financing statement is renewed before the expiring of its term, registration of the financing statement will automaticaly lapse. This could mean that you no longer have security for your loan to another person. Alternatively it could mean that the ranking of your security falls behind someone else who registered another interest against the same asset after you.

A secured party may renew the registration of the financing statement as many times as it wishes within the initial or any subsequent renewed registration term and therefore retain priority over other security interests in the same personal property indefinitely.

The PPSR has been operating since 1 May 2002 and hence any financing statements registered during the first year of the PPSR's operation (for the initial default registration term of five years) have just or are just about to expire and hence are now due for renewal.

If you have a financing statement registered on the PPSR please ensure that you contact a member of our commercial team to arrange for the renewal of your financing statement before the initial registration term expires.


This article has been prepared by Cavell Leitch Law for general information purposes only and important exceptions and other relevant factors may not have been included.  If understanding the legal area covered by this article as it affects your specific circumstances is important to you then please contact us for a proper legal opinion.