First Principles of Business Law

5. Using property as a security

5.3.5. Enforcement of chattel securities

Suppose that Sunil agrees to provide the materials Albert wants to buy from him, provided that Albert gives a suitable chattel security. Sunil wants to know how any such security would be enforced under the provisions of the Personal Property Securities Act 2009 (Cth) (PPSA).

Which of the following statements is correct?

(a) Under the provisions of the PPSA chattel securities are enforced by bringing an action in the courts, seeking a judicial sale of the collateral.

(b) Under the provisions of the PPSA chattel securities are enforced by the secured party, who may choose to either retain, or themselves dispose of, the collateral.