PMSI

Question 1

PSMI v. JLC

Answer 1

PMSI gets a 20 day grace period

If the Purchase money secured party perfects within 20 days of the debtor receiving possession of the collateral, the PSMI will take priority over a lien that arose during that 20 day period.

Question 2

PMSI in good that are not inventory v. SI

Answer 2

PMSI in goods other than inventory or livestock takes priority over all other security interests , no matter when they are perfected, if the secured party perfects within 20 days of the debtor receiving the goods

If the purchase money secured party fails to perfect within 20 days, apply the SP v. SP rules (first in time to file or perfect)

Because a PSMI in consumer goods is automatically perfected, this 20 day rule will always be met for consumer goods

Question 3

PSMI Super Priority for inventory

Answer 3

A PSMI in inventory or livestock will have priority over all other secure interests in that same inventory if a a SP

1) Prefects before the inventory is delivered to the debtor; and

2) Send an authenticated notification of the PSMI to the other SP they want to take priority over

Question 4

PSMI super priority in proceeds

Answer 4

If a PSMI has priority over a competing Secured party in goods other than inventory, then that super priority will extend to the proceeds of the collateral
If a PSMI has priority over a competing SP in inventory, then the priority will only extend to proceeds that are up front up front cash payments for the inventory sold

Question 5

PSMI v. PSMI

Answer 5

A seller PSMI beats a lender PSMI, otherwise first to file or perfect