A perfected purchase money security interest in a manufacturer's stock has priority over a conflicting security interest in the same stock if the notification states that the person expects to acquire a purchase money security interest in stock of the debtor and describes the stock.Which of the following priority rules does this statement correspond to?
A)PMSI in noninventory collateral
B)PMSI in inventory collateral
C)Buyer in the ordinary course of business
D)Artisan's and mechanic's lien

Question

Quizplus · Accepted Answer

One of the requirements for a perfected purchase money security interest in inventory to have priority over a conflicting security interest in the same inventory is that the notification states that the person expects to acquire a purchase money security interest in inventory of the debtor and describes the inventory [UCC 9-324(b)].

A Perfected Purchase Money Security Interest in a Manufacturer's Stock