Purchase Money Security Interest (PMSI)
A purchase money security interest secures seller credit or financing used to acquire specified goods, with special priority when statutory conditions are met.
Follow a secured transaction from agreement and attachment through perfection, filing, priority, monitoring, and creditor recovery.
A secured transaction links a payment obligation to personal-property collateral. The security agreement creates or provides for the security interest, which attaches only after the applicable enforceability requirements are met.
The secured party then uses the correct perfection method for each collateral type. A UCC-1 statement is a public notice record used for many filings, not the document that creates the lien. A qualifying purchase money security interest can receive special priority only when its collateral-specific timing and notice conditions are met.
Use this section to separate attachment, perfection, priority, and recovery. A secured creditor can still be junior, undersecured, stayed in bankruptcy, or unable to recover gross collateral value after costs and competing claims.
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A purchase money security interest secures seller credit or financing used to acquire specified goods, with special priority when statutory conditions are met.
A secured creditor has an enforceable claim supported by specified collateral, subject to priority, valuation, procedure, and insolvency law.
A secured party is a person or representative in whose favor an Article 9 security interest or agricultural lien exists.
A secured transaction gives a creditor rights in personal-property collateral to support payment or performance of an obligation.
A security agreement creates or provides for a security interest and defines the collateral and obligations it supports.
A security interest is a property interest in collateral that secures payment or performance of an obligation.
A UCC-1 financing statement is a public notice record used to perfect many Article 9 security interests by filing.