PPSA (Personal Property Security Act)

The Personal Property Security Act (PPSA) is a law that governs how personal property, such as vehicles, equipment, or inventory, can be used as collateral for loans. It establishes a legal framework for securing interests in this property, ensuring that lenders can have a claim over the asset if the borrower fails to repay. The PPSA also provides a public registry where these security interests can be recorded, helping to protect both borrowers and lenders by clarifying ownership and priority in case of default or bankruptcy.