Final answer:
A PPSA secured lender can enforce payment from a guarantor parent company by following certain steps, including determining if the guarantor has agreed to be bound by the PPSA and providing notice to the guarantor.
Step-by-step explanation:
A PPSA secured lender typically uses a Personal Property Security Agreement (PPSA) to secure a loan against the borrower's assets. If a guarantor parent company is involved, the lender can enforce payment from the guarantor by following certain steps.
First, the lender must determine if the guarantor has agreed to be bound by the PPSA. If the guarantor has expressly agreed to be bound by the PPSA, the lender can enforce payment by taking legal action against the guarantor.
Second, the lender may need to provide notice to the guarantor before taking any legal action. The specific requirements for notice can vary depending on the jurisdiction and the terms of the PPSA. It's important for the lender to ensure they comply with these requirements.