Purchase Money Security Interest (PMSI)

Last Updated: Jun 7, 2019

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A Purchase Money Security Interest (or "PMSI") is a claim on property or asset that enables the lender that provided financing for the acquisition of goods or equipment to obtain a priority ranking ahead of other secured creditors. A PMSI allows lenders to repossess goods that have been purchased with funds borrowed from them. A UCC-1 Lien is filed on the specific goods, giving them priority in front of other lenders.