The Personal Property Registry (PPR) is a computer database that records interests in personal property (motor vehicles, boats, inventory, accounts, etc.). It is used primarily by financial institutions, but it is also important for individuals and businesses who are considering buying personal property.
Here is an example of how the PPR is used:
- When you arrange a car loan, the car is collateral (security) for your loan. Until you have repaid the loan, the lender has an interest in the car. The lender registers that security interest in the PPR. This information is available to anyone planning to purchase the car or grant another loan using the car as collateral. (See an illustrative example below.)
The law – the Personal Property Security Act (PPSA) – provides protection for the lender’s security interest. For example, if you sold the car without paying the amount owing, the lender could seize the car from the new owner in order to pay off the outstanding debt. To avoid that situation, the new owner (buyer) should search the PPR in order to identify if there are any registered interests before buying the car.