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Farmer purchases livestock from another farmer

A white llama looking the camera, while a group of other llamas is visible in the background

This case study does not cover every step of the registration process, but instead highlights some of the key questions.

Giles is a hobby farmer who is interested in buying a flock of 20 alpacas advertised by farmer Tom Jones.

Giles approaches farmer Tom and learns that his farm is run through an incorporated company, Grazewell Pty Ltd. Giles obtains the Australian Company Number (ACN) of Grazewell Pty Ltd. He searches the PPSR and finds only one entry.

It gives the date of registration and the name and contact details of the secured party, identified by an ACN. It states that the collateral is commercial property: motor vehicle. Giles receives a search certificate from the PPSR.

While there is a security interest listed in the search result, no security interest is registered against livestock, so he can proceed to purchase the alpaca flock if he wishes. Giles is happy knowing he can purchase the alpacas free of any other security interests. A registered security interest would have meant there was debt or some other form of obligation owing against them.

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