Papua New Guinea enacted the Personal Property Security Act in 2011, as well as establishing a collateral registry. The law, which only came into force in 2016 governs security interests in personal property, both tangibles and intangibles, and clarifies priority rules. The Act takes a substantive approach, and applies to every transaction that substantially creates a security interest, regardless of its form. In order to ensure priority of interest, creditors must ensure they take all necessary steps to perfect their rights. This can be achieved by ensuring registration of the interest, or alternatively, taking possession or effecting control over the collateral.
- Act in English (PDF Version) https://www.treasury.gov.pg/html/legislation/files/acts/2012.personal.property.security.act_updated.pdf
- Online Security Register: ppsrpng.com.
- Further Reading:
Last Checked August 2020
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