A purchase-money security interest in consumer goods is perfected automatically at the time of a credit sale.

Question

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A purchase-money security interest (PMSI) in consumer goods is automatically perfected at the time of a credit sale, as long as certain requirements are met. These requirements include the secured party taking possession or control of the collateral, or filing a financing statement within a certain timeframe. However, it's worth noting that this automatic perfection only applies to consumer goods and not to other types of collateral, such as inventory or equipment.

A Purchase-Money Security Interest in Consumer Goods Is Perfected Automatically