PMSI Flashcards
1
Q
2 types of PMSI (purchase money security interest)
A
seller financed and financer financed
2
Q
seller-financed PMSI
A
Secured party 1) sells debtor collateral AND 2) retains a security interest in the item sold
3
Q
financer-financed PMSI
A
An enabling loan to a debtor that 1) enables the debtor to buy specific collateral AND 2) the creditor takes a security interest in the specific collateral AND 3) the credit or loan proceeds MUST ACTUALLY BE USED to acquire the collateral.
