PPSR Disclosure Statement

1. What is the PPSR?

The Personal Property Securities Register (PPSR) is a national online register established under the Personal Property Securities Act 2009 (Cth) (PPSA). It is administered by the Australian Financial Security Authority (AFSA) and is publicly searchable at www.ppsr.gov.au.

The PPSR allows businesses and individuals who have a security interest in personal property — that is, property other than land — to register and protect that interest. Registering on the PPSR puts the world on notice that a security interest exists over identified property.

"Personal property" for PPSR purposes includes equipment, vehicles, machinery, inventory, financial property, and other moveable assets. It does not include real property (land and buildings).

The PPSA replaced a fragmented collection of state and territory personal property security laws and created a single national regime. It came into full effect on 30 January 2012.

2. Why ITEquip registers on the PPSR

ITEquip Rental retains ownership of all equipment it rents to customers at all times. However, because rented equipment is in the physical possession of the customer, a third party — such as a bank, creditor, or liquidator — might not be aware that the equipment does not belong to the customer.

By registering a Purchase Money Security Interest (PMSI) on the PPSR, ITEquip protects its ownership rights in the following situations:

• Customer insolvency: If a customer becomes insolvent, an administrator or liquidator may attempt to treat rented equipment as an asset of the customer's estate. A valid PPSR registration prevents this and allows ITEquip to recover its equipment.
• Competing creditors: A customer's secured creditor (such as a bank with a general security agreement) may have a floating charge over all of the customer's assets. Without a PPSR registration, ITEquip's equipment could be swept up by that charge.
• Unauthorised sale: If a customer purports to sell rented equipment to an innocent third party, a PPSR registration gives ITEquip priority rights to recover the equipment or its proceeds.

Registration on the PPSR is a standard and routine practice in the equipment rental and leasing industry in Australia. It does not reflect any lack of trust in the customer — it is a precautionary legal measure that protects both parties.

3. What is registered

ITEquip will register a financing statement on the PPSR that includes the following information:

The registration will describe the collateral as "other goods" being the specific equipment identified in the Rental Agreement. Where equipment has unique serial numbers, these will be included in the registration.

4. Your rights as grantor

As the grantor (the party over whose property the security interest is registered), you have the following rights under the PPSA:

Right to a verification statement

When ITEquip registers a financing statement, the PPSR will issue a verification statement to the grantor. This confirms the details of the registration. You should review this statement carefully and contact ITEquip immediately if any details are incorrect.

Right to search the PPSR

You may search the PPSR at any time at www.ppsr.gov.au to view registrations against your business name, ACN, or ABN. A search fee applies (currently $2.00 per search). This allows you to see all security interests registered against your organisation by any secured party.

Right to demand an amendment or discharge

If you believe a registration is incorrect, has been registered without proper authority, or relates to an agreement that has ended, you may request that ITEquip amend or discharge the registration. ITEquip must respond within 5 business days and discharge registrations promptly when the Agreement has ended and all obligations have been met.

Right to object

If ITEquip refuses to amend or discharge a registration that you dispute, you may apply to a court for an order requiring ITEquip to do so.

5. Effect of PPSR registration on your business

Effect on your own borrowing

A PPSR registration by ITEquip over specific equipment items should have minimal impact on your ability to borrow. Lenders routinely encounter PPSR registrations by equipment lessors and understand that the equipment is leased, not owned. ITEquip's registration relates only to the specific rented equipment — it does not create a general charge over your business assets.

If your lender requires a PPSR search as part of a credit assessment, we recommend disclosing your rental arrangements proactively. You may request a letter from ITEquip confirming the nature of the registration if required by your lender.

Effect in insolvency

In the event your business becomes insolvent, ITEquip's PPSR registration gives it priority over unsecured creditors and many secured creditors in relation to the rented equipment. This means ITEquip can recover its equipment from an insolvency process. Rental payments that are overdue at the date of insolvency remain a debt claimable by ITEquip in the insolvency.

Effect on your own customers

If you supply goods or services to your customers using rented equipment, ITEquip's security interest does not affect your customers' rights in relation to goods or services you supply to them. The registration relates to the physical equipment, not to products or services you create using that equipment.

6. Third-party searches

The PPSR is a public register. Any person may search it by reference to a grantor's name, ABN, ACN, or serial number. This means that:

• Your bank or lender may search the PPSR and see ITEquip's registration
• Prospective business partners or investors may conduct due diligence searches
• A purchaser of your business may search the PPSR as part of their due diligence
• An insolvency administrator or liquidator will search the PPSR if your business becomes insolvent

This is a normal and expected part of commercial transactions in Australia. The existence of a PPSR registration by an equipment lessor is not considered a negative indicator — it simply demonstrates that the business uses leased equipment, which is a common and commercially sound practice.

If you are selling your business and wish for ITEquip's registration to be discharged as part of the sale, please contact us at least 20 business days before settlement to arrange an orderly transition or discharge.

7. Discharge of the registration

ITEquip will discharge (remove) its PPSR registration promptly in the following circumstances:

• The Rental Agreement has expired or been lawfully terminated and all outstanding amounts have been paid
• The equipment has been returned to ITEquip in satisfactory condition and a final inspection has been completed
• The equipment has been purchased by the Customer at end of term and full payment has been received
• ITEquip otherwise agrees in writing to discharge the registration

ITEquip will discharge the registration within 5 business days of the above conditions being met. A verification statement confirming the discharge will be issued by the PPSR to the grantor.

If you believe your registration should have been discharged but has not been, please contact our legal team at legal@itequip.com.au.

8. PPSA rights waiver

As noted in Section 14 of our Terms of Service, customers are required to waive certain rights under the PPSA that would otherwise apply. This is standard practice in commercial equipment rental agreements in Australia. The rights waived include:

These waivers are standard in the equipment leasing industry and are intended to allow ITEquip to act efficiently in the event of a customer default or insolvency, without being delayed by notice requirements that are more appropriate for consumer transactions. We recommend you seek independent legal advice if you have any concerns about these waivers.

9. Common questions

10. Contact us

If you have any questions about our PPSR registrations, wish to request a discharge, or need a letter confirming the nature of a registration for your lender, please contact our legal team: