PPS lease
A lease or bailment of goods for more than two years, or for an indefinite term, by a lessor regularly engaged in leasing.
A PPS lease is a deemed security interest: the owner of the goods must register or risk losing them to the hirer's financier or liquidator, even though the hirer never owned them. Open-ended hire agreements with no fixed end are PPS leases from day one. The threshold was one year until 2017 and is two years now.
Related terms
- PMSI (purchase money security interest) — A security interest that secures the purchase price of goods, or a lessor's interest under a PPS lease; it can rank ahead of earlier registrations.
- Security interest — An interest in personal property that secures payment or performance of an obligation.
- Vesting (s267) — The rule that an unperfected security interest passes to the grantor when the grantor becomes insolvent.
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