PMSI priority under the PPS Act

Subject to limited exceptions, purchase money security interests (PMSI, pronounced “pim-sey”) are a special type of security interest that has “super priority” over other security interests if it is registered on the PPSR within the timeframes prescribed by the PPS Act.

This guidance note is designed to provide a good starting point for legal practitioners who need to advise generally on PMSI priority by, first, providing guidance regarding PMSI perfection, then, by covering the likely, common scenarios where a priority contest involves a PMSI. It also provides practical guidance to legal practitioners who encounter the not-uncommon situation where the secured party may have missed the critical timeframes for PMSI registration.

See PMSI priority under the PPS Act.