The latest issue of the LexisNexis Insolvency Law Bulletin includes a very insightful Agony Aunt column on PPSA issues. Thank you to subscribers who have given us positive feedback. We hope you enjoy it.
I am an ordinary suburban lender and have been going out with my borrower for two years now. When we first started dating things between us were great — I felt safe every time he’d draw down my facility, charging his assets and registering extreme satisfaction. But he hasn’t asked me to marry him and I am worried about the level of his commitment. He doesn’t seem to have his priorities right and he laughs when I tell him I need more security.
Am I wrong to press him for more? Am I seeking perfection? Do you think I should give him another 24 months or so grace?
Worried, Baulkham Hills NSW
Dear Worried of Baulkham Hills
We’d all love to have our security perfected, but most of us have to live with something less. At least you’ve got possession by the sound of things, and if your borrower wants to retain title to his independence for a little longer, I’d say you should live with it for a while and hope that eventually the two of you achieve accession.
Getting married is all very well, but remember that a strong relationship depends on more than a piece of chattel paper. While your concerns are understandable, maybe you should invest more time in structuring a robust security agreement. After that you can head down to the new Register office together and then ITSA done deal!
IS HE A PIMSI?
Until recently my love life has been the typical flighty string of serial number lovers that our generation is famous for. It was fine for a while even though I got a bit of a reputation as a circulating asset. But I had started to feel that these unperfected security interests were leaving a void. Then I met the most amazing guy. I made him the priority of my advances and even tried collateral means to get him to engage in some serious commingling. However, even though he says he finds me attractive, I can’t seem to register the full extent of my interest. I’m worried that I may be doing something wrong.
Do you think he might be a PIMSI, and that I’m just not ticking the right box? Please answer and I’ll be forever in your debt.
Damaged Collateral, Collingwood, Vic
First of all, let’s cut out this “damaged” business. You need to understand that you are a worthwhile individual, and the mere fact that you’ve been a circulating asset for a few years with no fixed attachments doesn’t make you any less attractive than you’d otherwise be. One day, you’ll find that everything will come right, and from that moment of crystallization onwards, you’ll feel like you are being continuously perfected.
In the meantime, though, maybe you just need to take things a little slower. It’s not all about control, you know. Remember, many of these new-age PIMSIs are sensitive types, unlike the rotters of the old days, and it is absolutely essential to read them carefully. Mind you, that doesn’t mean they’re not vain — they still like you to make a point of recognising they’re PIMSIs, so make sure you find time to tell him — and remember, in this digital age with all the social media available to us, you can even do it electronically on a standard form.
If she knew I was writing to you she’d get really mad, but I’m worried about how to talk to my girlfriend about our personal property. She has just got out of law school and seems to speak a completely different language from me. I just get embarrassed with all this talk of control and possession, but she just takes it for granted. I’m worried I may not be able to perform to her expectations and that my PI premiums will skyrocket. Can you suggest how I can deal with my situation?
Bewildered of Mosman Park, WA
Don’t worry — if you do, your performance anxiety will only get worse. Find somewhere private (like a darkened closet, or the bathtub) and try repeating some key words or phrases to yourself over and over again. If you do, you’ll soon find yourself comfortable with expressions such as “intermediated security” and “migrated security interest”. However, once you overcome your feeling that some of these words are dirty, you should take care not to bandy them about too much. It’s one thing to drop the odd one into a dinner conversation, signaling that you’re ready to go the moment the system goes live — but if you throw them about too obviously she might think you’re trying to impress all the girls.