01 May 2002
Federated Farmers has produced an Issue Update on the Personal Property Security Act (PPSA) which comes into force today
to provide information on how farmers can use the Act to protect themselves against the collapse of commercial
enterprises such as processing plants.
"It is a historical reality that from time to time commercial enterprises fail and the protection of suppliers of goods
to processors, millers and manufacturers has been largely non-existent, says Federated Farmers President Alistair
Polson.
"Farmers who register a Purchase Money Security Interest (PMSI) over their stock will rank, as creditors, ahead of banks
and other financiers in the event of a processor collapse.
"Realistically nothing will happen unless farmers demand the provision of a PMSI and reward those companies that provide
them with their ongoing business.
"The Federation has drafted a basic security agreement for a PMSI that is available for sale by contacting 0800 FARMING
(327 646). An Issues Update on the implications of the PPSA is available to financial members."
ENDS