Secured parties who have failed to register their interest in time will be at risk if there is insolvency of the grantor within 6 months of the PPSA registration.
Generally, registration must be within 20 business days of the security agreement (depending on the type of interest).
The Court has the power to extend the time for registration retrospectively.
A recent case has shown that the Court will be reluctant to extend the time for registration of PPSA interests when the application for extension is made after an insolvency administration.
It is therefore crucial that creditors who may have registered late, obtain Court orders protecting their interest before any insolvency administration.