Differences of the PPSA and the Bank Act Order Instructions: discuss the differences and similarities of the ppsa and the bank act regarding secured transactions, including types of property, methods of securing the transaction, enforceability, and priority.
Differences of the PPSA and the Bank Act Sample Answer
Introduction
The Personal Property Securities Act was specifically designed to consolidate and enable efficient and widespread effective securitization of all personal assets. It allows most of the citizens to obtain finance using secured assets or personal property that they possess or own. The act achieves its effectiveness through the fundamental PPS regulation system that has perfected the adoption of the Perfection-by-registration requirements. The register provides a public online register to all interested parties that have security interests. The register maintains newly-created security interests in one single accessible location. The major aim of the PPSA act is to provide secured finance by accessing accurate information on potential debtors before any money can be advanced to potential customers (Ross and Gunning, 2012).
The banking act has three major goals 1) Protect all the bank’s depositors funds 2) Ensure the maintenance of adequate cash reserves and promote efficiency in financial systems. The banking act deals with the regulation of the financial system for example by requiring all the banks to report all the banking activities to the federal bank’s commercial banking division or to the inspector general of banks in commonwealth countries.
The major similarities between the two acts are that they both seek to control the money lent to the public and maintain ways of protecting the public and also the institutions. However, the major difference is that the PPS Act seeks to protect the institutions that lend money to habitual loan defaulters and who through a system of a centralized register would be weeded out of the system. The banking act through the requirement of cash ratios and reserves seeks to ensure that the depositors are protected from inefficient banks.
The two acts present a system of regulating the financial systems and secure the interests of both the public and the institutions.
Differences of the PPSA and the Bank Act References
Ross, R. and Gunning, K. (2012) Personal Property Securities Act 2009, retrieved on 24
February 2015 from
http://www.mondaq.com/australia/x/166366/Securities/Personal+Property+Securities+Act+2009+Cth
