Purchase Money Security Interest
/ˈpɜːrtʃəs ˈmʌni sɪˈkjʊrɪti ˈɪntrɪst/
Definitions
- (n.) A security interest in goods or software that secures payment or performance of an obligation incurred to acquire those goods or software.
The lender took a purchase money security interest in the debtor's new equipment to secure the loan.
Forms
- purchase money security interests
Related terms
See also
Commentary
A purchase money security interest (PMSI) grants the secured party priority over other creditors with respect to the collateral, especially in financing the acquisition of goods or inventory.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.