purchase-money security interest
- purchase-money security interest
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purchase-money security interest (PMSI)
USA
A special type of security interest provided for under the Uniform Commercial Code to enable purchases of property (UCC § 9-324). A lender that advances money used by a buyer to make a purchase or a seller that extends credit to the buyer to complete the purchase has a security interest in the property sold until the loan or credit extension is paid in full. For example, if a buyer purchases a car with funds loaned by a bank, the bank has a purchase-money security interest in the car which secures its loan to the buyer.
See also
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
purchase money security interest — see interest 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. purchase money security interest … Law dictionary
Purchase Money Security Interest — (Purchase Money Security Interest or PMSI pronounced pimzee ) A security that a person takes in property, such as inventory for example, that secures payment with regard to those assets of all or part of its purchase price. (Dictionary of… … Glossary of Bankruptcy
security interest — see interest 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. security interest … Law dictionary
security interest — Interest in property obtained pursuant to security agreement. In re Wilson, Bkrtcy.Pa., 25 B.R. 61, 63. A form of interest in property which provides that the property may be sold on default in order to satisfy the obligation for which the… … Black's law dictionary
purchase-money obligation — USA The obligation secured by a purchase money security interest under the Uniform Commercial Code (UCC § 9 103(a)(2)). Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
purchase money interest — A security interest in a debtor s property that is created when the creditor s extension of credit to the debtor is used by the debtor to acquire the property that is used to secure the transaction. American Banker Glossary … Financial and business terms
interest — in·ter·est / in trəst; in tə rəst, ˌrest/ n [probably alteration of earlier interesse, from Anglo French, from Medieval Latin, from Latin, to be between, make a difference, concern, from inter between, among + esse to be] 1: a right, title, claim … Law dictionary
purchase — Transmission of property from one person to another by voluntary act and agreement, founded on a valuable consideration. Spur Independent School Dist. v. W. A. Holt Co., Tex.Civ.App., 88 S.W.2d 1071, 1073. To own by paying or by promising to pay… … Black's law dictionary
security — Protection; assurance; indemnification. The term is usually applied to an obligation, pledge, mortgage, deposit, lien, etc., given by a debtor in order to assure the payment or performance of his debt, by furnishing the creditor with a resource… … Black's law dictionary
security — se·cur·i·ty /si kyu̇r ə tē/ n pl ties 1 a: something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation used his property as security for a loan b: surety see also … Law dictionary
