Personal Property Security Act

The Personal Property Security Act (PPSA) is a law that governs the rights of lenders and borrowers regarding personal property used as collateral for loans. It provides a legal framework for registering security interests, so lenders can claim a borrower’s assets if they default. This law helps protect both parties: it ensures lenders know their rights to repossess property and allows borrowers to maintain access to credit by using their personal property as security. Essentially, the PPSA clarifies the rules for securing loans with personal items, fostering fair and transparent financial transactions.