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PMSI (purchase money security interest)

A security interest over particular collateral, granted to secure debt incurred in acquiring the collateral in question from the secured party (a seller PMSI), or granted to secure funds lent by a secured party and used by the grantor for the purpose of enabling the grantor to acquire the collateral (a lender PMSI).

Includes leases, retentions of title and consignments that are deemed security interests under the Act.

Section 14 of the PPS Act provides the full definition of this term.