Personal Property Security System

A Personal Property Security System is a legal arrangement where a borrower offers personal assets—like jewelry, electronics, or vehicles—as collateral to a lender. If the borrower defaults on the loan, the lender has the right to seize and sell those assets to recover the owed money. This system helps protect lenders by providing a legal claim on specific property, ensuring that loans are more secure. It’s a common method used in various loans and financing agreements, clarifying ownership rights and responsibilities for both parties involved.