Alert for all artists

21 02 2012

With sincere thanks to my lovely studio-buddy Julia Storey for the heads-up: please make sure you know about the Personal Properties Securities Act and its serious impact on artists.

From the NAVA website:

Under new laws, artists must register their ownership of artworks before consigning them to a gallery, in order to avoid losing all if the gallery goes under.

Previously, when an artist consigned artworks to a gallery, with the understanding the gallery would sell the artworks on the artist’s behalf, the art works remained the property of the artist. If the gallery then became insolvent and went into liquidation, the consigned artworks escaped the reach of the liquidator because they were not seen to be part of the gallery’s assets.

Under the new Personal Properties Securities Act, however, works on consignment at a gallery are considered to be part of that gallery’s collateral or its security interests. In the same way that if you purchase a car with money loaned by your bank, the bank will usually require the car to serve as security for the repayment of the loan, with the right to repossess the car if you fail in your payment obligations.

This means that any artworks on loan to a gallery will be seized as part of the gallery’s assets, if the gallery were to go into liquidation. 

In order for artists to protect their property and prevent it from being seized they must register any art works on consignment to a gallery, at the newly created Personal Properties Securities Register (PPSR), an electronic register established as part of the Act.

See the NAVA website for more details.


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2 responses

22 02 2012
Lord Coconut

A great reminder for jewellers (and stores) in these troubled times.

24 02 2012
Nina

Thanks for that!




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