Anyone with a view to how this works?

Just read the press release, http://www.harness.org.au/news-artic...?news_id=17562 and must admit I was bemused at how a horse could be sold from under the owner.

Further research gave me this info;
"The PPSA is based on similar legislation in Canada and New Zealand and the major case study for the Act is indeed based on a racing case. In Waller v NZ Bloodstock Limited, NZ Bloodstock leased the stallion Generous to Glenmorgan Farm for an initial period of three years on terms specifying that title remainsed at all times with NZB. This created a PPS Lease which was never registered on the PPS Register. When Glenmorgan defaulted on the lease payments, NZB terminated their agreement and re-took possession of the stallion. However, prior to the Generous contract, Glenmorgan had granted a debenture over “all its present and future assets” to a third party which was entered onto the PPS Register. When Glenmorgan also defaultd on payments to the Third Party, the unfortunate result was that the Third Party was able to argue that it had a registered interest in the horse that took priority and its subsequent sale and the $2 million proceeds of the sale. NZB received nothing." http://clanbrooke.com/

Still unsure how this could happen. Anyone care to explain it in layman terms that I may understand.