Priority

Question 1

Does a PMSI in consumer goods perfect automatically?

Answer 1

YES.

Question 2

A consumer buyer of consumer goods takes free of a SI, even if perfected, unless _______________.

Answer 2

A consumer buyer of consumer goods takes free of a security interest, even if perfected, unless prior to purchase, the secured party filed a financing statement covering the goods.

Question 3

If a transferee of collateral is not a buyer, does the SI continue in the collateral?

If so, what is the exception?

Answer 3

If collateral is transferred and the transferee of the collateral is not a buyer, the security interest generally continues in the collateral, unless the secured party has authorized its sale free of the security interest.