UCC Expert’s Corner: Court Rejects Challenge to Sufficiency of PMSI Notice
June 7, 2012
By Paul Hodnefield, Associate General Counsel for CSC
The purchase-money security interest (“PMSI”) is a powerful risk-management tool for secured creditors. Under UCC Article 9, a PMSI can provide a creditor with a security interest that has super priority over creditors with prior perfected interests. To obtain PMSI priority, however, the creditor must strictly comply with the statutory perfection and notice requirements.