what is an example of a pmsi 
a car loan can be an example of a pmsi situation a financial institution may agree to lend money to a borrower to finance the purchase of a new car the bank can register its interest in the car as a pmsi because the loan funds are being directly used to buy the property it wants a secured interest in the bottom linecreditors are often prioritized in terms of timing the pmsi exception allows credits that may not be first in line to still get a secured interest in collateral to gain this secured interest the lender must be sure its loan funds were used to buy the goods file a ucc 1 and follow other regulatory rules based on the type of collateral 