A purchase-money security interest (PMSI)in consumer goods is perfected automatically when the PMSI is created.

Question

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According to the Uniform Commercial Code (UCC), a PMSI in consumer goods is perfected automatically upon creation, without the need for filing or other action. This means that the secured party does not need to take any additional steps to protect their interest in the collateral, as long as the PMSI qualifies as a consumer transaction under the UCC. However, it is important to note that this automatic perfection only applies to consumer goods and not other types of collateral.

A Purchase-Money Security Interest (PMSI)in Consumer Goods Is Perfected Automatically