REALWorld Law

Real estate finance

Trading of debt

Is secured debt traded between lenders? If so, how is a transfer of the debt to another lender effected?



Secured debt is often traded between lenders. The transfer of debt can be effected by agreement and by registering an approved transfer form with the registry in which the associated security is registered. Stamp duty may be imposed on a transfer of security.  The Personal Property Securities Act 2009 (PPSA) deals with the transfers of debts and may require registration of a PPS security interest over the transferor of the debt in order to avoid creditors of the transferor seeking to make a claim against the transferee in relation to the debt.