Creditor Interest Priority Perfected vs. Perfected First to perfect has priority Perfected vs. Unperfected or Unsecured Perfected has priority PRIORITIES Neither creditor is perfected First to Attach has priority Debtor's creditors vs PMSI in Consumer Goods PMSI in Consumer Goods 12 Purchase Money Security Interest (PMSI) Priorities: (PMSI) refers to a legal claim that allows a lender to ither repossess property financed with its loan. The Rationale is: 1) Prior lender should not benefit from collateral it didn't pay for 2) Purchase creditor should have best claim to item purchased with it's money Lender 1 with After Acquired Property Clause PMSI in Consumer Goods automatically wins Lender 1 with After Acquired Property Clause PMSI in Equipment if Notify Lender 1 within 20 days Lender 1 with After Acquired Property Clause PMSI in Inventory if File UCC FS & Notify Lender 1 Before Delivery of new inventory A Creditor Interest Priority Perfected vs. Perfected First to perfect has priority Perfected vs. Unperfected or Unsecured Perfected has priority PRIORITIES Neither creditor is perfected First to Attach has priority Debtor's creditors vs PMSI in Consumer Goods PMSI in Consumer Goods 12 Purchase Money Security Interest (PMSI) Priorities: (PMSI) refers to a legal claim that allows a lender to ither repossess property financed with its loan. The Rationale is: 1) Prior lender should not benefit from collateral it didn't pay for 2) Purchase creditor should have best claim to item purchased with it's money Lender 1 with After Acquired Property Clause PMSI in Consumer Goods automatically wins Lender 1 with After Acquired Property Clause PMSI in Equipment if Notify Lender 1 within 20 days Lender 1 with After Acquired Property Clause PMSI in Inventory if File UCC FS & Notify Lender 1 Before Delivery of new inventory A