Both these questions are in the context of the PPSA (personal properties securities act

Question 1.

Fred Bloggs manufactures outdoor furniture from recycled car parts. His furniture has become very popular. Historically it has been a cash business where the clients paid cash for the furniture when it was collected. However, due to its popularity there is a high demand from retailers to stock his furniture for sale. The retailers are asking for credit terms usually for 30 days.

So as to expand his business Fred is willing to offer credit to these new customers.

Fred asks you:

1. What term or terms, if any, he should add to his terms of trade? If he should include one please draft it

2. f he does follow your advice and includes your drafted clause what process does he have to undetake to provide himself with the best security possible? Provide Fred with a step by step process he should follow.

3. Please advise Fred of what are the 5 most important steps he should take ?

Question 2:

You are acting for the Receiverof Old Fellas Pty Ltd a retailer of Harry Potter memrobilia. On search of the PPSR you see that there are a number of Security Interests held by suppliers to Old Fellas. Your client, Hambrose Bank Limited has a General Security Interest the collateral for which is all current and after acquired personal property.

When making your initial investigations for the receivership what would you be on the look out for regarding the the security interests held by suppliers.