When a mortgage is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to the lender.

Question

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In a PPSA (Personal Property Security Act) jurisdiction, a mortgage on personal property creates a security interest in the property, but the borrower does not transfer title to the lender. The borrower retains ownership of the property but grants the lender a security interest in it as collateral for the loan.

When a Mortgage Is Taken on Personal Property in a PPSA