A purchase money security interest in consumer goods is automatically perfected without a creditor's filing or possession of the collateral.

Question

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The Uniform Commercial Code (UCC) provides that a purchase money security interest (PMSI) in consumer goods is automatically perfected at the time of the transaction without a creditor's filing or possession of the collateral. This means that the creditor does not have to take further steps to perfect the security interest, as it is already perfected upon its creation.

A Purchase Money Security Interest in Consumer Goods Is Automatically