The Bay of Islands, in New Zealand's Northland region, continues to thrive as a centre with some of New Zealand's prime fishing areas. Bay of Islands Fishing Boats Limited('BIFBL'), operates a business of leasing fully equipped fishing boats. Its customers, include tourists and holiday makers who travel to the Northland region, in order, to engage in recreational fishing. These customers who engage in such recreational or leisure activities, usually lease these boats for periods of a few hours of a day, others lease the boats for a whole day or even for a few days.

BIFBL, however wishes to expand its business, in order, to lease its boats to commercial fishing companies, who wish to fish in the fertile fishing areas of Northland as such commercial leasing has very high financial returns. Some of these companies are interested, in just hiring BIFBL's boats for periods of time that range from 18 months to five years. At the end of these leasing periods, the lessees return the boats to BIFBL. During the terms of the leases, BIFBL is paid a very large amount, for each month of the leasing period. Other companies are interested in, leasing the boats in order, to be able to eventually purchase these boats, pursuant to lease to buy transactions and enter arrangements for leasing with the option of being able to purchase the boats at the end of the leasing periods. The leasing agreements for the fishing boats outline the terms on which the boats will be leased, the amount which will be paid as rental per month to BIFBL as well as other obligations of both parties, including details such as insurance for the boats, responsibility for the repair and upkeep of the boats during the leasing periods.

BIFBL's accountants have analysed the financial returns of such commercial fishing boat leasing activity and have concluded that it will be a very successful business activity. However, the accountants are quite concerned about the grave risks of such leasing activity as it would mean BIFBL would be parting with possession of these boats for periods ranging from 18 months to five years.

The accountants of BIFBL, approach you for advice on what steps BIFBL, needs to take, in order to protect its interest in the boats which will be the subject of both, merely leasing arrangements as well as the leas to buy arrangements, pursuant to which the boats will be leased but with lessees given the option of buying the boats at the end of the leasing period.

Advise BIFBl's accountants of how BIFBL could protect its interests in the fishing boats as these are items of personal property.