Purchase money security interest is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

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A purchase money security interest (PMSI) is a type of security interest that a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods. The PMSI gives the creditor certain rights in the purchased goods, such as the right to repossess them if the borrower defaults on the loan.

Purchase Money Security Interest Is an Interest a Creditor Automatically