New Zealand

Abstract

Abstract New Zealand law has its roots in the laws of England, and it remains closely related to the laws of other jurisdictions with that heritage. Because of this, the concept of ‘receivables’ in New Zealand is closely linked to concepts used in such other jurisdictions, and is generally understood to mean book debts. However, in 1999 New Zealand enacted legislation that fundamentally reformed the law concerning security over (and certain other dealings with) personal property. The New Zealand Personal Property Securities Act 1999 (PPSA) provides a detailed set of rules governing the creation, priority, and enforcement of security interests in personal property. The PPSA is a code based on equivalent North American legislation—(loosely) Article 9 of the Uniform Commercial Code (UCC) of the United States, and more particularly the equivalent Canadian provincial statutes. The PPSA governs all transactions that ‘in substance’ secure obligations by recourse to personal property. In this context, the ‘substance’ of a transaction is its practical or economic effect as distinct from its form, which may well be based on concepts of title or equitable interests. For example, a fl oating charge under a company debenture, and a supplier’s title retention arrangement will each create a ‘security interest’ for the purposes of the PPSA.