Personal Property Security Acts

Personal Property Security Acts (PPSA) are laws designed to protect the interests of lenders and borrowers in personal property, such as vehicles, equipment, or inventory. These acts establish a legal framework for creating and enforcing security interests, which are rights lenders have in a borrower's assets as collateral for loans. If the borrower defaults, the lender can seize the collateral to recover their losses. By registering these security interests, lenders ensure their claims are prioritized over others. In essence, PPSA helps clarify ownership and financial responsibility regarding personal property in transactions.