In the courts

Beware the creditor who is not fully aware of the application and effect of the PPSA
A company sold or leased four logging trucks and trailers to another company, which subsequently defaulted in its payments.  The High Court found that the vendor was in effect an unpaid unsecured creditor of the purchaser and the purchaser's secured creditor had a prior claim on the assets.

An overly broad financing statement is not misleading
The Court of Appeal has agreed with the High Court that an overly broad financing statement is not misleading for the purposes of section 149 of the Personal Property Securities Act.

Creditors' interests must be taken into account when determining what is in the best interests of a company
The Court has decided that consideration of what is in the best interests of a company must include the creditors as well as the shareholders.

What is a "financial institution" in the context of transferring debt?
The English Court of Appeal has considered what constitutes a "financial institution" to determine whether a transferee of a debt could enforce repayment.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.