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Security interest
Practical Law ANZ Glossary w-001-4807 (Approx. 3 pages)
Glossary
Security interest
In general terms, a property right created either by means of an agreement between parties or by operation of law over assets (or collateral) to secure the performance of an obligation or the payment of a debt.
The term is defined in legislation:
- For the purposes of the Personal Property Securities Act 2009 (Cth) (PPSA), an interest in personal property that in substance secures the payment or performance of an obligation, or is otherwise a transaction that is deemed to be a security interest (section 12, PPSA) (PPSA security interest). Generally speaking, a PPSA security interest must be registered on the Personal Property Securities Register for it to be a valid and enforceable security interest.
- For the purposes of the Corporations Act 2001 (Cth) (CA 2001), a PPSA security interest or any other charge, lien or pledge (section 9, CA 2001).
- For the purposes of section 609(1) and section 611 (item 6) of the CA 2001, a reference to a security interest includes a reference to a negative pledge.