A security interest is only enforceable against the grantor (the person having an interest in the personal property and who grants the security interest) if the security interest has attached to the personal property.
“Attachment” is a new concept introduced by the PPSA. A security interest attaches to personal property when both the following requirements under s19(2) of the PPSA have been met:
“(a) the grantor has rights in the collateral, or the power to transfer rights to the collateral to the secured party; and
(i) value is given for the security interest; or
(ii) the grantor does some act by which the security interest arises.”
Personal property is known as collateral if it is (or is anticipated to be) the subject of a security interest.