I agree with Okie - "Or use my advice - when in doubt make it 100% clean with no ambiguity. That's always my response to any loan doc answer."
These are what lawyer's call 'talking points'. The reference to 'PMSI' could be enough for a judge to determine that it isn't valid, or at a minimum convince you to share proceeds of the collateral with an intervening creditor to avoid litigation. If you have already made the loan, then not much you can do. If you haven't, then do it correctly now.