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#1881128 - 12/23/13 10:13 PM Rely on previous PMSI filing
Slim Offline
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Joined: Aug 2011
Posts: 15
If we had a prior loan to purchase livestock - security agreement and UCC description both read PMSI - said loan was paid off some time ago. Can we rely on that UCC filing as a blanket lien now for a new loan to purchase livestock? Does it matter that it says PMSI on the UCC but we do not plan to jump through the purchase money hoops. The old PMSI filing was the first filing of record.

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#1881495 - 12/26/13 07:57 PM Re: Rely on previous PMSI filing Slim
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
You should check with your legal counsel for an answer to this question. You must be seeing invervening liens recorded otherwise you probably wouldn't have to ask this question.

Or use my advice - when in doubt make it 100% clean with no ambiguity. That's always my response to any loan doc answer.
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#2094033 - 08/18/16 04:56 PM Re: Rely on previous PMSI filing Slim
Kevin Offline
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Joined: Apr 2016
Posts: 12
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.

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