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Types of security interests

The main types of security interests are:

  • mortgages;
  • charges (other than PPSA security interests);
  • specific security agreements;
  • general security agreements;
  • pledges; and
  • "quasi" securities (guarantees, negative pledges, deeds of subordination).

Since the commencement of the Personal Property Securities Act 2009 (Cth) (PPSA), the following types of interests are, among others also considered to be security interests if they, in substance, secure the performance of an obligation in relation to personal property (ss 12(1) and 12(2) of the PPSA):

  • conditional sale agreements (including retention of title arrangements);
  • leases of personal property (eg equipment leases);
  • hire purchase agreements;
  • consignments;
  • transfers of title; and
  • flawed asset arrangements.

Some other interests are “deemed” by the PPSA to be security interests even if they do not, in substance, secure the performance of an obligation: s 12(3) of the PPSA.

See Types of security interests.