A secured transaction is where a security interest such as a mortgage is granted to secure an obligation such as a loan.

Secured transactions and security interests always have two features:

• secured property (collateral under the PPSA); and
• secured money (or obligations).

The collateral is there as a back-up to satisfy the obligations if the person who owes the obligations (debtor under the PPSA) cannot.

If a person (the grantor under the PPSA) buys a car on lease finance, the leasing company (secured party under the PPSA) retains title, leases the car, and will have remedies to repossess and sell the car if lease payments are not made. The lease gives the leasing company rights against collateral (the car) to secure obligations (rental payments). Many car leases will be classic security interests under the PPSA.

The PPSA applies to all transactions that grant an interest in personal property to secure the payment or performance of obligations. The PPSA has little regard to either the form of the transaction or who has title to the collateral.¹ The car lease in the example above may be a security interest despite the financier being a lessor and not a mortgagee or chargee holding a mortgage or charge over the car.

Turning to personal property, the meaning of personal property is discussed in Chapter 7 (Personal Property). Personal property is essentially everything other than

• land and buildings,
• water rights,
• most mining rights and tenements,
• certain trade licences such as "shing licences, and gaming, betting and casino licences (there are other exclusions).

The PPSA applies to security interests over a huge array of property interests, including:

• intellectual property,
• financial assets such as shares and bonds and units in managed investment schemes,
• contractual rights, and
• many other valuable rights and interests.