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Purchase Money Security Interest
The concept of a purchase money security interest is not defined in the BRA. The usual understanding of the concept is that the credit was given to able the debtor to acquire property that is the security. Thus, an interest in property created to secure a debt resulting from a sale of that property on credit is a purchase money security interest. A common example would be an interest in a television sold on credit where the interest secures the unpaid price of the television. Likewise, an interest in a television to secure a loan that enables the debtor to acquire the television is a purchase money security interest. See Uniform Commercial Code section 9-107.
