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#1164909 - 04/16/09 07:23 PM PMSI
Sage Offline
Platinum Poster
Joined: Aug 2005
Posts: 914
We financed a piece of equipment with money from a line of credit and then we reimbursed the line of credit from the term loan that we wanted to be secured by the PMSI.Can we say the term loan has a PMSI?

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Article 9
#1165222 - 04/17/09 12:46 PM Re: PMSI Sage
Tom at HOME Offline
Diamond Poster
Joined: Oct 2005
Posts: 1,139
In order to have a “purchase-money obligation,” you must have an obligation of the owner that is incurred as all or part of the price of the collateral. It is your burden to prove that the value you gave the owner/debtor was used to acquire the equipment. (9-103)

Your example was not a clean neat fit, but is probably OK.

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