Purchase Money Security Interests Part II: Discussions in Secured Transactions Podcast

The topic of this podcast is to identify when a purchase money security interest (“PMSI” or PIM-zee) has been created and to identify fact patterns that frequently appear on law school and bar examinations where it is significant that a security interest is a PMSI. Remember, a PMSI is simply a specific type of security interest.

This podcast is the second of two covering PMSIs. Here is the first podcast. 

Learning Outcomes

On completion of the podcast, the student will be able to:

1. Define the rule of attachment under the rules of § 9-203.
2. Explain what a seller or lender must do under § 9-103 to create a PMSI.  
3. State the importance of § 9-309 on a PMSI in consumer goods. 
4. Discuss the exception to automatic perfection. 
5. Discuss the superpriority rules of § 9-324.
6. Provide an example of the application of § 9-317.
7. Explain a priority contest with a judicial lien creditor or bankruptcy trustee.
8. Define the “yard sale” rule under § 9-320(b).
9. Describe the effect of priority rules for fixtures in § 9-334 if the security interest is a PMSI.