U.C.C. § 9-103 (Am. L. Inst. & Unif. L. Comm'n 1998) — Purchase-Money Security Interest; Application of Payments; Burden of Establishing — Reading Room

U.C.C. § 9-103 — Purchase-Money Security Interest; Application of Payments; Burden of Establishing

Editorial summary. Section 9-103 defines the purchase-money security interest (PMSI) — a security interest in goods that is taken by the seller to secure the purchase price, or taken by a person who gives value enabling the debtor to acquire rights in the collateral. PMSI status carries super-priority under § 9-324.

Citation: U.C.C. § 9-103 (Am. L. Inst. & Unif. L. Comm'n 1998)Jurisdiction: United StatesEffective: 2001-07-01

Governing Rule

Codified text.

Editorial note. A security interest is a purchase-money security interest to the extent that it is taken or retained by the seller to secure all or part of the price, or taken by a person who gives value enabling the debtor to acquire rights in the collateral if the value is in fact so used (§ 9-103(a)–(b)).

Doctrinal Significance

Codified text.

Editorial note. PMSI status is the classical priority exception to the first-to-file-or-perfect rule of § 9-322. A PMSI in goods perfected within the statutory grace period primes an earlier-filed after-acquired-property interest.

Cross References

Codified text.

Editorial note. See U.C.C. §§ 9-317 (interests taking priority over unperfected security interests); 9-322 (priorities among conflicting interests); 9-324 (PMSI priority); 9-334 (fixture priority).

Revision history

1998-07-25 — Revised Article 9 promulgated.

Canonical source: https://www.law.cornell.edu/ucc/9/9-103