Section 9-103 of the UCC defines a PMSI as a security interest in goods (aka inventory) that are collateral for an obligation that arises in connection with the sale of the goods.
When the required steps are met, a PMSI can give a creditor a first or priority security interest in the goods, even if other secured parties hold prior perfected security interests in the same collateral.
Check out this infographic to learn more about who might benefit from a PMSI in Inventory and how to comply with PMSI requirements.
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