The Personal Property Security Act (PPSA) is designed to be a national ‘umbrella’ Act concerning the taking of security over personal property. Personal property includes any property other than land, certain rights and entitlements granted by law or as specifically excluded by the PPSA.
Examples of a personal property security include:
- A fixed and floating charge,
- A hire purchase agreement,
- A lease of goods,
- A chattel mortgage, and
- A flawed asset arrangement.
The PPSA also includes transfers of account or chattel paper, commercial consignments and the interest of a lessor or bailee under a PPSA lease as a security interest. To be truly effective, a security interest must be effective against the competing claims of third parties or creditors in an insolvency situation. Lawyer’s at DuMoulin Boskovich LLP can help you navigate this complex legislation.