Module Application
- Does your organisation deal in security interests or issue mortgages to customers?
- Does your organisation understand the legal and regulatory obligations it must comply with when dealing in security interests or issuing mortgages to customers?
- Does your organisation have systems and processes in place to manage and monitor compliance with its obligations?
Module Scope
The SECURITY INTERESTS and MORTGAGES module provides organisations that deal in security interests or that issue mortgages to customers with an understanding of their obligations under Australian legislation. The module equips organisations with knowledge of their obligations and the processes and procedures necessary to ensure compliance.
Security interest obligations are derived largely from federal legislation, whereas mortgage obligations stem from a variety of state laws. The SECURITY INTERESTS and MORTGAGES module describes these obligations and explains how to establish the relevant systems and operations to comply with these obligations.
Organisations that want to either perfect or enforce their security interests or offer mortgages can use the module to confirm the adequacy of existing compliance measures.
Organisations that are new to dealing in security interests and mortgages can use the module to achieve full compliance at every step of their entry into the market.
The SECURITY INTERESTS and MORTGAGES module comprehensively covers a wide range of topics, including:
- Registration of security interests on the Personal Property and Securities Register (PPS Register)
- Perfecting interests on the PPS Register
- Priorities of security interests
- Priority contests between security interests
- Enforcement of security interests and disposal of collateral
- Creation and registration of mortgages
- Mortgage covenants
- Remedies following a mortgagor’s default
- Bankruptcy and receivership
The specific questions and answers covered by the module are:
- What are the legal obligations and legal regulations for organisations that deal in security interests and issue mortgages?
- How do the obligations and regulations differ state by state for mortgage providers?
- What processes or procedures should be in place to ensure compliance?
- What are the consequences if the legal obligations and regulations are breached?
The SECURITY INTERESTS and MORTGAGES module covers the obligations of Australian organisations under federal, state and territory legislation, and provides practical guidance to ensure that these obligations are complied with through the implementation and maintenance of best practice processes throughout the organisation.
The federal legislative and regulatory landscape from which the primary legal obligations are derived include:
- Bankruptcy Act 1966 (Cth)
- Corporations Act 2001 (Cth)
- Criminal Code Act 1995 (Cth)
- Electronic Transactions Act 1999 (Cth)
- National Consumer Credit Protection Act 2009 (Cth)
- Personal Property and Securities Act 2009 (Cth)
- Privacy Act 1988 (Cth)
The module also covers obligations under state and territory legislation in relation to:
- Conveyancing
- Criminal law
- Duties
- Electronic conveyancing
- Electronic transactions
- Farm debt mediation
- Land title
- Property law
- Transfer of land
Significant consequences apply to organisations and their employees found to have breached or not complied with their legal obligations. These consequences vary considerably depending on the nature and extent of the breach or failure.
The SECURITY INTERESTS and MORTGAGES module covers specific consequences in detail, which can include:
- Loss of priority or legal claim over security interests
- Individual and corporate monetary penalties for failure to register securities in the PPS register
- Being unable to recover payment through realising secured assets
- Being unable to benefit from a secured interest in land
- Restriction, suspension or termination of access to the Electronic Lodgment Network for PEXA