Davidlutz

In secured lending, few issues are as critical—or as frequently misunderstood—as purchase money priority. When multiple creditors claim an interest in the same collateral, priority determines who gets paid first. Under Article 9 of the Uniform Commercial Code (UCC), purchase money security interests (PMSIs) can dramatically alter the normal first-to-file priority rules. For lenders and

In secured lending, lien priority determines outcomes. When a borrower defaults or enters bankruptcy, priority dictates which creditor gets paid first—and which may recover little or nothing. One of the most powerful, and most misunderstood, priority tools under Article 9 of the Uniform Commercial Code (UCC) is the purchase money security interest (PMSI). While PMSIs