A security interest that is created when a buyer uses the lender’s money to make the purchase and immediately gives the lender security (UCC § 9-103); a security interest that is either (1) taken or retained by the seller of the collateral to secure all or part of its price or (2) taken by a person who by making advances or incurring an obligation gives value to enable the debtor to acquire rights in or the use of collateral if that value is in fact so used.
• If a buyer’s purchase of a boat, for example, is financed by a bank that loans the amount of the purchase price, the bank’s security interest in the boat that secures the loan is a purchase-money security interest. — Abbr. PMSI.
— Also termed purchase-money interest. [Cases: Secured Transactions 83, 146. C.J.S. Secured Transactions §§ 10, 55, 103–105.]
译员Joanne，亚洲顶尖法学院国际贸易专业，擅长翻译涉及
媒体、体育和娱乐领域的法律文件。
