Super-priority
The PMSI's ability to rank ahead of an earlier-registered all-assets security interest over the same goods.
The customer's bank will almost always have registered an all-present-and-after-acquired-property interest first. Without a PMSI registered in time, the supplier's goods are swept up by the bank's charge. With it, the supplier's claim on those goods comes first.
Related terms
- PMSI (purchase money security interest) — A security interest that secures the purchase price of goods, or a lessor's interest under a PPS lease; it can rank ahead of earlier registrations.
- Priority — The order in which competing security interests are paid out of the same collateral.
- Registration timing — The windows that decide whether a registration gets PMSI priority and survives s588FL.
Need this registered, not just defined?
Free check: am I covered?