Purchase Money Security Interest

• Category: Contracts - Sale of Goods
• State: Multi-State
• Control #: US-0887BG
• Format: Word; Rich Text

Description

A purchase money security interest is a security interest or claim on property that enables a lender who provides financing for the acquisition of goods or equipment to obtain priority ranking ahead of other secured creditors. A purchase money security interest allows lenders to repossess goods that have been purchased with funds borrowed from them if the borrower defaults. General Form of Security Agreement in Consumer Goods — Purchase Money Security Interest is a contract between a creditor and a debtor that provides the creditor with rights to the debtor's consumer goods in the event of default. This type of security agreement is typically used when the debtor has obtained financing for the purchase of consumer goods, such as furniture, appliances, or electronics, and the creditor wants to ensure repayment of the loan by having a right of recourse to the purchased goods in the event of a default. The agreement outlines the terms of the loan, including the amount of the loan, the interest rate, and the repayment schedule. It also identifies the purchased goods, the date of purchase, and the debtor's rights to the goods. The agreement then states that the debtor grants the creditor a security interest in the purchased goods, meaning that if the debtor defaults on the loan, the creditor has the right to repossess the goods. The agreement typically also includes provisions governing the process of repossession, as well as the right of the debtor to redeem the goods by repaying the loan in full. It may also include a clause regarding the amount of time before the creditor can repossess the goods, as well as time limits on the debtor's right to redeem the goods. Different types of General Form of Security Agreement in Consumer Goods — Purchase Money Security Interest include: * Unconditional Security Agreement * Conditional Security Agreement * Blanket Security Agreement * Floating Security Agreement * Manufacturer's Security Agreement * Purchase Money Security Agreement * After-Acquired Collateral Security Agreement.

General Form of Security Agreement in Consumer Goods — Purchase Money Security Interest is a contract between a creditor and a debtor that provides the creditor with rights to the debtor's consumer goods in the event of default. This type of security agreement is typically used when the debtor has obtained financing for the purchase of consumer goods, such as furniture, appliances, or electronics, and the creditor wants to ensure repayment of the loan by having a right of recourse to the purchased goods in the event of a default. The agreement outlines the terms of the loan, including the amount of the loan, the interest rate, and the repayment schedule. It also identifies the purchased goods, the date of purchase, and the debtor's rights to the goods. The agreement then states that the debtor grants the creditor a security interest in the purchased goods, meaning that if the debtor defaults on the loan, the creditor has the right to repossess the goods. The agreement typically also includes provisions governing the process of repossession, as well as the right of the debtor to redeem the goods by repaying the loan in full. It may also include a clause regarding the amount of time before the creditor can repossess the goods, as well as time limits on the debtor's right to redeem the goods. Different types of General Form of Security Agreement in Consumer Goods — Purchase Money Security Interest include: * Unconditional Security Agreement * Conditional Security Agreement * Blanket Security Agreement * Floating Security Agreement * Manufacturer's Security Agreement * Purchase Money Security Agreement * After-Acquired Collateral Security Agreement.