Drafting security agreements

It is useful for legal practitioners to be aware that, while an agreement may not be strictly necessary, it is highly desirable. This is explained in this guidance note.

This guidance note also contains specific drafting tips regarding:

• • personal property under the National Credit Code (NCC), which is contained in Sch 1 of the National Consumer Credit Protection Act 2009 (Cth);
• • personal property not under the NCC;
• • default;
• • contracting out of the PPS Act’s enforcement provisions; and
• • confidentiality.

A checklist accompanies this guidance note. Titled “Checklist for drafting and reviewing security agreements”, when preparing or reviewing a security agreement, legal practitioners should consider the matters in this checklist.

See Drafting security agreements.