Gold Valley Iron Pty Ltd (in liq) v Ops Screening & Crushing Equipment Pty Ltd

(2022) 59 WAR 232; [2022] WASCA 134

Western Australia Court of Appeal

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For Australian Law.

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Interrogate

Catchwords

1. Personal Property Securities
2. › Security interests
3. › Meaning of 'security interest'
4. › Hire purchase agreements
5. › Whether hire agreement with option to purchase created security interest 'in substance'
6. › Factors relevant to characterisation
7. › Personal Property Securities Act 2009 (Cth), s 12(1), s 12(2)(e)
1. Personal Property Securities
2. › Security interests
3. › Vesting of unperfected security interests on insolvency
4. › Whether security interest required to be perfected by registration
5. › Personal Property Securities Act 2009 (Cth), ss 21, 267
1. Contract
2. › Construction
3. › Hire agreements
4. › Whether agreement contained option to purchase or first right of refusal
5. › Construction of 'Special Terms & Conditions of Hire'

Quick Take

A declining rebate structure crediting hire payments against the purchase price in a hire purchase agreement with an option to purchase is a strong indicator that the agreement creates a security interest under s 12 of the PPSA, requiring registration for perfection.