Security Deposit - Registration of Security Interests

The Personal Property Securities Act 2009 (Cth) (PPSA) enables any person to register its security interests on the Personal Property Securities Register (PPSR).  The PPSR is a real-time electronic notice board which allows individuals and organisations to search and register security interests in personal property (see www.ppsr.gov.au for more information).

For the purposes of the PPSA, any cash in a bank account (Security Deposit) under the control of the IMO pursuant to a Security Deposit Deed (Security Deposit Deed) that is provided to the IMO for the purposes of Credit Support (Market Rule 2.38.4(b)) or Reserve Capacity Security (Market Rule 4.13), is a form of “personal property”.  The IMO’s interest in the Security Deposit is a “security interest”, and the Security Deposit Deed secures payment and performance obligations by a Market Participant.

Therefore the IMO will register on the PPSR its security interests in any such Security Deposit.  As part of this process the IMO will recover from the Market Participant any fees incurred in registering the security interests, and the IMO will send a notice of the verification statement (containing the details of the registration) to the Market Participant.