An automatically perfected security interest in consumer goods when a merchant or lender offers financing to a borrower to purchase goods is called a(n)

Question

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A purchase-money security interest (PMSI) arises when a creditor provides financing for the acquisition of goods and automatically perfects when the goods are consumer goods. This means the creditor has a priority claim on the goods if the borrower defaults.

An Automatically Perfected Security Interest in Consumer Goods When a Merchant