Your financing statement may require changes
The new Personal Property Securities Register (PPSR) website was launched on 1 October 2018. The new website is not just a cosmetic facelift for the PPSR - it also includes a raft of changes that make the PPSR more user friendly.
Alongside the new website, MBIE have also introduced a mandatory requirement that all financing statements include a debtor's New Zealand Business Number (NZBN) where the debtor is a company, incorporated society, charitable trust, industrial and provident society, credit union & friendly society or building society.
The requirement for a NZBN to be registered against a debtor on a financing statement does not apply to trusts, partnerships or sole traders.
Do I need to manually enter a NZBN on to all financing statements?
For financing statements registered prior to 1 October 2018, most secured parties will not need to do anything, as MBIE will automatically add the NZBN to financing statements as long as the debtor's name, incorporation and organisation details match those recorded on the relevant source register.
For financing statements that have not been automatically updated by MBIE, secured parties will need to register a financing change statement to record the debtor organisation's NZBN. Secured parties have 2 months from 1 October 2018 to amend their financing statements and make sure they are compliant.
MBIE will send out an email to secured parties notifying them if they have been unable to automatically add the NZBN to their financing statements. However, secured parties should not wait for or rely on an email from MBIE. Failure to record a NZBN on a financing statement where relevant means a financing statement may not be valid and your security may be unenforceable.
We suggest all secured parties take this opportunity to review all details of their financing statements not just whether a NZBN number has been included.
PPSR Training and financing statements assistance
If you receive an email from MBIE regarding your financing statements and are unsure of what to do or if you would like a refresher training session on the PPSR our team is happy to help.