[3] The Act reformed the law relating to security interests in personal property and established the PPSR.
Registering a security interest on the PPSR may give creditors a better chance of recovering a debt if a debtor defaults.
Before entering into a contractual relationship with a debtor, a creditor may search the PPSR to check whether they may pose a risk.
It possible for potential creditors to: Consumers may also search the PPSR before buying an item of personal property to check that there is no money owing.
The PPSR also correlates information from the NEVDIS (National Exchange of Vehicle and Driver Information System) database[7] to provide write-off history and stolen vehicle data in the form of a PPSR certificate, which can be issued upon successful completion of a serial number (VIN) search.