Under certain conditions, a purchase-money security interest will take priority over a previous creditor's interest in after-acquired property.

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The concept of a purchase-money security interest (PMSI) refers to a loan that is used to purchase collateral, such as a car or equipment. Under certain circumstances, a PMSI can take priority over a previous creditor's interest in after-acquired property. This means that if the borrower defaults on the loan, the PMSI creditor may have the right to repossess the collateral, even if a previous creditor already had a security interest in it. However, this is subject to certain conditions and requirements, depending on the type of collateral, the timing of the PMSI, and whether proper notifications and filings have been made.

Under Certain Conditions, a Purchase-Money Security Interest Will Take Priority