FAQ: What Personal Property? What is a Personal Property Security?
What Personal Property? What is a Personal Property Security?
In the context of the PPSR, Personal Property is a form of property that is not land or buildings. This may include tangibles like cars, art, machinery and crops, or intangibles like licenses, intellectual property and contract rights.
A Personal Property Security (PPS) is when a secured party - e.g. a finance company or wholesale suppliers - takes an interest in personal property as security (collateral) for a loan or other obligation.
An example of this is when a person borrows money from a bank to buy a car, and offers the car as collateral or security for the loan. The bank's interest over the collateral is a Personal Property Security.