Once a liquidator is appointed to a debtor, they are allowed to ignore any security interests registered during the 6 months leading up to their appointment if they hadn’t been lodged within 20 business days of the security agreement being formed.

In a trade credit context, the security agreement is usually the completed credit application incorporating your Terms & Conditions (eg, your Retention of Title right).

Thus, if you fail to lodge your registration within 20 business days of receiving a credit limit application, you risk losing your security rights if a liquidator is appointed within the next 6 months.

If you miss the 20 business days deadline, you effectively have three choices:

1. Apply for a court order to deem your registration to have been lodged in time;
2. Have your customer accept a fresh, replacement agreement with you; or
3. Cross your fingers and hope that your customer does not fall over within the next 6 months. 

Additionally, there are other timing requirements that come into play where the nature of your agreement with your customer forms a PMSI.