5.1 This clause applies to the extent that this Contract provides for a ‘security interest’ for the purposes of the Personal Property Securities Act 2009 (Cth) (“PPS Law”). References to PPS Law in this agreement include references to amended, replacement and successor provisions or legislation.
5.2 If Mackay Refrigeration does not have at Commencement a PPS Law registration ensuring a perfected first priority security interest in the Equipment, the Hire Period, (including any extension of the Hire Period or the aggregate of consecutive Hire Periods during which the Customer has substantially uninterrupted possession) may not despite anything else in this document or any Hire Schedule be longer than:
(a) 90 days in the case of Equipment which may or must be described by serial number in a PPS Law registration; or
(b) A year in any other case.
5.3 Mackay Refrigeration may register its security interest. The Customer must do anything (such as obtaining consents and signing documents) which Mackay Refrigeration requires for the purposes of:
(a) Ensuring that Mackay Refrigeration’ security interest is enforceable, perfected and otherwise effective under the PPS Law;
(b) Enabling Mackay Refrigeration to gain first priority (or any other priority agreed to by Mackay Refrigeration in writing) for its security interest; and
(c) Enabling Mackay Refrigeration to exercise rights in connection with the security interest.
5.4 The rights of Mackay Refrigeration under this document are in addition to and not in substitution for Mackay Refrigeration’ rights under other law (including the PPS Law) and Mackay Refrigeration may choose whether to exercise rights under this document, and/or under such other law, as it sees fit. To avoid any doubt about it Mackay Refrigeration security interest will attach to proceeds.
5.5 To the extent that Chapter 4 of PPSA applies to any security interest under this agreement, the following provisions of the PPS Law do not apply and, for the purposes of section 115 of the PPS Law are “contracted out” of this agreement in respect of all goods to which that section can be applied: section 95 (notice of removal of accession to the extent it requires Mackay Refrigeration to give a notice to the Customer); section 96 (retention of accession); section121(4) (notice to grantor); section125 (obligations to dispose of or retain collateral); section 130 (notice of disposal to the extent it requires Mackay Refrigeration to give a notice to the Customer); section 129(2) and 129(3); section 132(3)(d) (contents of statement of account after disposal); section 132(4) (statement of account if no disposal); section 135 (notice of retention); section 142 (redemption of collateral); and section 143 (re-instatement of security agreement).
5.6 The following provisions of the PPS Law: section 123 (seizing collateral); section 126 (apparent possession); section 128 (secured party may dispose of collateral); section 129 (disposal by purchase); and section 134 (1) (retention of collateral) confer rights on Mackay Refrigeration. Customer agrees that in addition to those rights, Mackay Refrigeration shall, if there is default by Customer, have the right to seize, purchase, take possession or apparent possession, retain, deal with or dispose of any goods, not only under those sections but also, as additional and independent rights, under this document and the Customer agrees that Mackay Refrigeration may do so in any manner it sees fit including (in respect of dealing and disposal) by private or public sale, lease or licence.
5.7 The Customer waives its rights to receive a verification statement in relation to registration events in respect of commercial property under section 157 of the PPS Law.
5.8 Mackay Refrigeration and the Customer agree not to disclose information of the kind that can be requested under section 275(1) of the PPS Law. The Customer must do everything necessary on its part to ensure that section 275(6)(a) of the PPS Law continues to apply. The agreement in this sub-clause is made solely for the purpose of allowing to Mackay Refrigeration the benefit of section 275 (6)(a) and Mackay Refrigeration shall not be liable to pay damages or any other compensation or be subject to injunction in respect of any actual or threatened breach of this sub-clause.
5.9 Customer must not dispose or purport to dispose of, or create or purport to create or permit to be created any ‘security interest’ (as defined in PPS Law) in the Equipment other than with the express written consent of Mackay Refrigeration.
5.10 Customer must not lease, hire, bail or give possession (‘sub-hire’) of the Equipment to anyone else unless Mackay Refrigeration (in its absolute discretion) first consents in writing. Any such sub-hire must be in writing in a form acceptable to Mackay Refrigeration and must be expressed to be subject to the rights of Mackay Refrigeration under this agreement. Customer may not vary a sub-hire without the prior written consent of Mackay Refrigeration (which may be withheld in its absolute discretion).
5.11 Customer must ensure that Mackay Refrigeration is provided at all times with up-to-date information about the sub-hire including the identity of the sub-hirer, the terms of and state of accounts and payment under the sub-hire and the location and condition of the Equipment.
5.12 Customer must take all steps including registration under PPS Law as may be required to:
(a) Ensure that any security interest arising under or in respect of the sub-hire is enforceable, perfected and otherwise effective under the PPS Law;
(b) Enabling the Customer to gain (subject always to the rights of Mackay Refrigeration) first priority (or any other priority agreed to by Mackay Refrigeration in writing) for the security interest; and
(c) Enabling Mackay Refrigeration and the Customer to exercise their respective rights in connection with the security interest.
5.13 To assure performance of its obligations under this agreement, the Customer hereby gives Mackay Refrigeration an irrevocable power of attorney to do anything Mackay Refrigeration considers the Customer should do under this agreement. Mackay Refrigeration may recover from Customer the cost of doing anything under this clause 5, including registration fees.