A recent PPSA decision has highlighted the need for businesses to make sure they know their own entity details so that they are creating valid registrations. Check your own details, particularly if you are trading as a trust.

This case relates to AMAL Trustees Pty Limited, which is the corporate trustee of a lending fund. As a corporate trustee, AMAL has an ACN. The Trust Fund pays tax so it also has an ABN.

In 2018 and 2020 (and up to the time of the judgment) the trust fund had lent up to $45 million to the Top Shelf Group collection of four companies. This was documented under various Loan Agreements and General Security Agreements.

PPSA registrations were made by AMAL to secure the Trust Funds’ security interests granted by Top Shelf in the loan documents. However, the registrations were made in the name of AMAL Trustees Pty Limited and its ACN. The ABN of the Trust Fund was not included in the Secured Party details.

AMAL suspected that their PPSA registrations might be defective without reference to the Fund’s ABN and made new registrations referring to same. A s588FM Corporations Act application to extend time for those registrations was then made.

In seeking the extension of time, the Court agreed with the applicant’s submission that the PPSA registrations lodged in 2018 and 2020 would be defective because they did not refer to both the corporate trustee’s ACN and the Trust Fund’s ABN in accordance with the regulations.

Takeaway: As the Secured Party making a PPSA registration over your customer, check your own details! If you are operating as a trust, both the trustee ACN and any trust ABN need to be specified in the Secured Party details when making registration.