PPSA Myths Unveiled – What You Need To Know

The Personal Property Security Act (PPSA) is a comprehensive legal framework designed to regulate the creation, registration and enforcement of security interests in personal property across various jurisdictions, such as Canada, Australia and New Zealand. Its primary goal is to establish clear rules for how lenders and borrowers can secure loans using personal assets, ensuring transparency and predictability in commercial transactions.

However, its reach and application extend far beyond the traditional lending landscape. Arrangements which involve the supply of goods on consignment, under retention of title terms, equipment and motor vehicle financiers, supply of goods under hire and rental arrangements or operating leases are all caught by the PPSA, and unless sufficient steps are taken to protect their rights in the relevant goods, owners of those (unpaid) goods risk losing them, whether to a third party buyer, or in the event of customer insolvency. Despite having been in