Regarding Circulating and Non-Circulating interests – can you please explain the context of these in the PPSR. There appears to be no way to identify a security as circulating or non-circulating in the registration process, and no way to see this information in the search results. Does it really exist or is it just a concept? If so, what does it mean – and is it really synonymous with APAP?
The provisions relating to circulating and non-circulating security interests are transitional, and are there to take account of existing fixed and floating charges. The concept will disappear over time, being replaced by the general notion of the security interest. New security interests entered into after PPS commences over the assets of a company that may come and go will most likely be registered against the collateral class ‘all present and after-acquired property’.