The automatic perfection rule applies only to a purchase money security interest in consumer goods.

Question

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The automatic perfection rule only applies to purchase money security interests (PMSIs) in consumer goods. A PMSI is a security interest that arises when a seller or lender provides financing to a buyer for the purpose of purchasing goods, and the security interest attaches to the goods as collateral. In the case of a PMSI in consumer goods, the security interest is automatically perfected, meaning that the lender does not have to take any additional steps to establish its priority over other creditors. Other types of security interests, such as those in non-consumer goods or those that arise outside of a purchase transaction, require additional steps to be taken in order to achieve perfection.

The Automatic Perfection Rule Applies Only to a Purchase Money