A collateral lien may exclude some categories of collateral. This is of particular concern if a piece of property changes from one category to another. In this video presentation, Charles B. Jimerson and two additional attorneys provide a thorough explanation of purchase money security interest (also known as PMSI). Additionally, the speakers describe categories of collateral excluded from collateral liens.
To access the presentation, visit YouTube or click play on the embedded image below. The length of the presentation is 1:42:03.
Introduction To Blanket Collateral Lien Exclusions
The presentation begins with a discussion on Lien Exclusions and Purchase Money Security Interests. The definition of “personal property” is key for perfection. In the practical example used, a car transfers from inventory to equipment. As a result, this can have an impact on filing a lien because the car as equipment is proceeds of the car as inventory. Therefore, it is important to do a litigation check on your client and police the borrower.
What Is A Purchase Money Security Interest Or PMSI?
A Purchase Money Security interest (PMSI) is stated simply as a security interest in goods that secures the repayment of debt in connection of the purchase price of a particular set of goods. There are contractual restrictions on PMSI, and it is generally issued in a two party transaction. In the transaction, the supplier or seller or lender of goods reserves security interest for a purchase price. However, they must strictly comply with the the perfection and notice requirements set forth in article UCC §§9-406 and UCC §§9-408. Otherwise, the interest may be invalid. There are several examples of collateral discussed that would qualify as a PMSI, an overview of how to effectively execute a purchase money agreement, and related considerations.
Additional Concerns And Interests
After the speakers explain these concepts in depth, the presentation provided for a Q&A session to listeners and viewers.