A purchase money security interest takes priority over perfected security interests in after-acquired property,even if the perfected interest predates the purchase money security interest.

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This is because a purchase money security interest (PMSI) is specifically designed to give priority to the lender who provided the funds to purchase the collateral. Under the Uniform Commercial Code (UCC), a PMSI takes priority over all other security interests in the same collateral, including those that may have been previously perfected. However, there are some exceptions and limitations to this rule, so it is important to consult the UCC provisions and state laws to determine the exact priority of competing security interests.

A Purchase Money Security Interest Takes Priority Over Perfected Security