What does PMSI mean?

PMSI stands for Purchase Money Security Interest. It is a legal term used in secured transactions, referring to a creditor's security interest in goods that enables them to obtain a loan to purchase those goods. Essentially, it allows the seller or lender to retain a security interest in the property until the buyer fully pays for it. This type of interest is prioritized over other claims against the property, providing additional protection for the seller or lender.