In short
A specific security deed grants a lender or supplier security over a defined asset or class of assets — a piece of equipment, a debtor book, specific shares, or intellectual property — rather than the borrower's whole undertaking. It's registered on the Personal Property Securities Register against the correct collateral class, and it's the right tool where a general security agreement would be broader than the deal calls for.
When a specific deed is the right tool
Not every secured lending or supply arrangement calls for security over everything a borrower owns. Where finance is tied to a particular asset — a fleet of vehicles, a specific plant item, a parcel of shares, or a defined pool of receivables — a specific security deed gives the secured party exactly the collateral it needs without imposing the broader restrictions a general security agreement places on a borrower's other dealings. It's also the natural structure for equipment financiers, invoice financiers and vendors retaining title over goods sold on credit.
Describing the collateral correctly
The single most consequential drafting decision is how the collateral is described, both in the deed and in the PPSR registration. Under the Personal Property Securities Act 2009 (Cth), the collateral class selected on registration (for example 'other goods', 'account' or 'intellectual property') and the serial number details for serial-numbered property determine whether the registration is even effective. A registration against the wrong collateral class can be entirely ineffective against a liquidator despite the deed itself being perfectly valid.
Perfection and priority
Security is perfected by registering a financing statement on the PPSR, and priority between competing security interests in the same collateral generally runs by registration time, subject to the purchase money security interest (PMSI) rules that give certain financiers and suppliers super-priority if they register within the required timeframe. We calendar PMSI registration deadlines separately because missing the window converts a super-priority interest into an ordinary one.
Enforcement against the specific asset
On default, enforcement rights under the PPSA — seizure, disposal, and application of proceeds — apply to the specific collateral described in the deed, not to the borrower's other assets. The deed sets out notice requirements before enforcement (subject to the exceptions in the PPSA for perishable or rapidly depreciating collateral) and how proceeds are applied, including any surplus owed back to the grantor.
Interaction with other security
Where a borrower has already granted a general security agreement to another lender, a specific security deed over one asset class needs an intercreditor or priority arrangement to be effective in practice, because the earlier general security holder's registration will otherwise rank ahead. We check the PPSR before drafting to identify existing registrations and negotiate the priority position the new secured party actually needs.
What the fixed fee covers
- Specific security deed drafted to the identified collateral
- PPSR search of existing registrations against the grantor
- PPSR registration against the correct collateral class
- PMSI positioning and registration timing advice where relevant
- Priority deed with any existing secured party if required
Mistakes we see
- Registering against the wrong PPSR collateral class, making the registration ineffective
- Missing the PMSI registration deadline and losing super-priority status
- No PPSR search before drafting, missing an existing general security agreement that outranks the new interest
- Vague collateral description in the deed that doesn't match what's actually financed
- No enforcement notice procedure built into the deed, creating disputes on default
Who this is for
- Equipment and asset financiers
- Invoice and receivables financiers
- Suppliers financing goods sold on retention of title terms
- Lenders taking security over specific shares or IP rather than a whole business
Frequently asked questions
- How is this different from a general security agreement?
- A general security agreement covers all present and after-acquired property of the grantor. A specific security deed is limited to a defined asset or asset class, which suits financiers who only need security over what they've actually financed.
- What is a PMSI and why does the deadline matter?
- A purchase money security interest gives certain financiers and suppliers priority ahead of an earlier general security interest, but only if registered within the strict timeframe set by the PPSA — generally before the grantor takes possession, or within 15 business days for some inventory financing. Missing it means falling back to ordinary priority by registration time.
- Can I take a specific security deed if a general security agreement already exists?
- Yes, but the earlier general security holder will usually rank first unless a priority or intercreditor deed is put in place, or the new interest qualifies as a PMSI with super-priority.
- What happens if the collateral description is wrong on the PPSR?
- The registration may be defective and ineffective against a liquidator or trustee in bankruptcy, meaning the secured party is treated as an unsecured creditor despite having a validly executed deed. We treat the registration as being as important as the deed itself.
- Does this deed need to be registered anywhere other than the PPSR?
- If the collateral includes real property or certain regulated assets, additional registration (such as with the relevant land title office) may be required. We identify this during drafting rather than after settlement.
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