Personal Property Security Act (PPSA)

The Personal Property Security Act (PPSA) is a law designed to govern the rights of lenders and borrowers regarding personal assets. It establishes rules for securing loans with personal property, such as vehicles or equipment. When someone borrows money, they can offer their property as collateral, which the lender can claim if the borrower fails to repay. The PPSA also creates a registration system, allowing creditors to notify others about their security interests, ensuring transparency and fairness in transactions. Overall, it helps protect both lenders and borrowers in personal property financing.