Term
| Purchase-Money Security Interest |
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Definition
| A security interest in collateral, other than investment property, by a person who gives value for the purpose of enabling a debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights. PMSI has special priority. |
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Term
| PMSI in Inventory and Non-Inventory |
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Definition
| Non-Inventory PMSI must be perfected within 15 days of the debtor taking possesion. Inventory PMSI must be secured before the debtor takes possession and prior secured parties must be notified. |
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Term
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Definition
| The PMSI exists to enable a person who has advanced funds for a particular asset to obtain priority in the asset above creditors who have general interests in all of the debtors assets. |
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Term
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Definition
| A perfected security interest in crops or their proceeds, given for value to enable the debtor to produce or harvest the crops, and given while the crops are growing or during the 6-months prior to the crops growing, has priority over any other secured interest in the same collateral given by the same debtor. |
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