PPSA registration system

The Personal Property Security Act (PPSA) registration system is a legal framework that safeguards creditors’ interests in a borrower’s personal property, like equipment or inventory. When a lender finances such assets, they register a security interest on a centralized registry—usually online—to establish priority over other creditors. This registration creates a public record, indicating who has a claim on the property. If the borrower defaults, the registered creditor has a legal right to seize and sell the assets to recover the owed amount. The PPSA system promotes transparency and helps prevent disputes over who has priority in claiming assets.