[extract] While there are some matters which may cause concern in the Personal Property Security Bill, the certainty and efficiency which its introduction offers clearly offset these potential sticking points. Moving to registration based upon functionality rather than on the basis of archaic and highly artificial constructs must be an improvement. Further, under the new provision, the question of priority is clear from the time the security interest is created thereby imposing less risk on creditors. This should result in greater willingness to extend credit. With less uncertainty and greater supply, the cost of capital to borrowing corporations should be comparatively less than is currently the case. Who would argue with that result if it transpires?
Nessen, Paul von
"The Perspectives of Borrowing Corporations Under the Personal Property Security Bill,"
Bond Law Review:
1, Article 6.
Available at: http://epublications.bond.edu.au/blr/vol14/iss1/6