A purchase money security interest is an interest that a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

Question

Quizplus · Accepted Answer

A purchase money security interest (PMSI) is a type of security interest that gives a creditor the right to repossess or reclaim specific property (consumer goods) that was used as collateral for a loan if the borrower defaults on the loan. PMSI is automatically granted to the creditor when they extend credit to the consumer to purchase the goods.

A Purchase Money Security Interest Is an Interest That a Creditor