Personal Property Securities BillEnterprise and Commerce
The Personal Property Securities Bill will bring much greater clarity, certainty and predicability to the laws about lending and borrowing money, Enterprise and Commerce Minister Max Bradford says.
The Bill was introduced last week, and after it's second reading on Saturday, goes to the Commerce Select Committee in the new year.
Mr Bradford said the Bill overhauls personal property securities law - relating to security interests over any property such as cars, computers and boats. It does not include land.
The Bill provides for a centralised electronic register for personal property - via the Internet - to consolidate and extend existing registers.
"This will make registrations and searches easier and cheaper, and reduce the risk that a search will not reveal that a financing statement has been registered," Mr Bradford said.
The Bill also includes detailed and predictable priority rules setting out who is first in line for repayment should a company run into difficulties.
"This will cut business and consumer credit costs by providing clarity and consistency, and will greatly reduce the potential for long-winded and expensive legal disputes," Mr Bradford said.