Purchase Money Security Interest (PMSI) Definition | Becker
Accounting Dictionary
Purchase Money Security Interest (PMSI)
A purchase money security interest is a special type of security interest that arises when a creditor sells the collateral to the debtor on credit, retaining a security interest in the collateral or when the creditor advances funds used by the debtor to purchase the collateral. A properly perfected purchase money security interest is superior to all other security interests in the same collateral.