Personal Property Security Act (Canada)

The Personal Property Security Act (PPSA) in Canada is a legal framework that governs the use of personal property as collateral for loans. It allows lenders to register their interest in a borrower's assets, ensuring that they have a claim on those assets if the borrower defaults on the loan. The PPSA clarifies the rights and responsibilities of both borrowers and lenders concerning secured transactions, helping to facilitate credit and protect the interests of all parties involved. Each province has its own version of the PPSA, but they all aim to provide a consistent approach to secured lending across Canada.