Canadian Personal Property Security Act

The Canadian Personal Property Security Act (PPSA) is a law that governs the security interest in personal property used as collateral for loans or financing. When a borrower takes a loan and offers personal property (like vehicles or equipment) as security, the lender registers their interest in that property. This registration system helps establish priority rights if the borrower defaults. It ensures clear rules about who has rights to the property, protecting both lenders and borrowers by providing transparency and reducing disputes over ownership and claims in insolvency situations.