The Personal Properties Security Act 2009 (PPSA) will take effect from 30 January 2012 creating significant changes for Owners, syndicators, trainers and breeders of thoroughbred and standardbred horses and greyhounds.
Any owner of a horse or greyhound who enters into an agreement for the training or care of a horse may be affected by this legislation. This includes all types of ownership agistment and training.
Failure to register an interest in a horse or greyhound could result in other parties gaining possession of the horse or greyhound in certain circumstances.
Information Link for Thoroughbred Owners and Trainers from RISA: RISA Information
Information Link for Greyhound Owners and Trainers: Greyhound Information
Information Link for Harness and Greyhound Industry: Australian Government Website
Australian Government Help Line: 1300 007 777
Email inquiries to Australian Government: firstname.lastname@example.org
What is the PPSA?
This is new legislation designed to protect the interests of owners of personal property when that property is placed in the care of another party. As currently worded it may extend to include horses in the racing and breeding industry as well as greyhounds.
How does it work?
Anyone who has an interest in an item of personal property which at this point includes horses and greyhounds can and should register this interest on the PPSA Register after 30 January 2012 if they have an agreement with another party to train, race, care for or agist the horse or greyhound.
Whenever an owner enters into an agreement which creates a security interest they should protect their interest by registering it on the PPSA Register. Therefore agreements longer than 12 months to train or agist a horse or greyhound would be covered by the PPSA. If an owner did not register their interest, others with a registered interest may take possession of the horse or greyhound.
For example a horse is leased or consigned to a trainer who has mortgaged their stables to a bank. The bank registers an interest over all the assets including stables and horses but the horse owner fails to register an interest in the horse they have leased. The trainer defaults on the loan and the bank takes possession of all the assets. As the horse owners have not registered their interest the bank may be entitled to take possession of the horse.
For example, a greyhound is leased to a trainer who has mortgaged their kennels to a bank. The bank registers an interest over all the assets including the kennels and greyhounds but the greyhound owner fails to register an interest in the greyhound they have leased. The trainer defaults on the loan and the bank takes possession of all the assets. As the greyhound owners have not registered their interest the bank may be entitled to take possession of the animal.
What does it apply to?
The PPSA will apply to all horses and greyhounds within Australia. PPSA Acts also exist in New Zealand, the USA and other countries.
What is the PPSA REGISTER?
The PPSA Register is an electronic record or scoreboard of security interests in a particular piece of property.
It does not replace the Registrar of Racehorses operated by RISA.
It will allow a more transparent system of advising interests in property and will operate 24/7.
PPSA Registration - why register and how?
Failure to properly register a PPS Lease can result in the owner (or lessee) of a racehorse or greyhound losing all of their rights of ownership in the racehorse or greyhound, or a third party (e.g. a bank who did register) having priority over the race horse or greyhound.
How to register your interest?
The PPS Register is available at this link: Australian Government Website
You can create an account here as a first step. Interests can be registered from 30 January 2012 unless otherwise advised by the Australian Government on the site.
Interests created before 30 January 2012 are deemed to have been registered for 2 years from January 2012. After that 2 years, the deemed registration lapses.
For interests created on or after 30 January 2012, there is no 2 year honeymoon/ transition period within which to register. In effect you should register immediately.
There is no exemption under PPSA given for owner/ trainers if one of the part owners is also the trainer. The group of owners should still register their interest against the horse or greyhound.
The above information is provided by Racing Queensland as information only and should not be taken as legal advice. All persons affected by PPSA legislation should take steps to obtain professional advice.