Under certain conditions, perfection of a security interest is accomplished by completing attachment with no further steps required. Which of the following qualify?
I.
Purchase money security interest in tables that are purchased to be used in the buyer’s restaurant.
II.
Purchase money security interest in tables that are purchased by a retailer to sell in the buyer’s furniture store primarily to consumers.
A is corrent. Automatic perfection applies to purchase money security interests in consumer goods. B is incorrect because the tables are being purchased as equipment. C is incorrect because neither choice is a PMSI in consumer goods but instead in equipment or in inventory. D is incorrect because the tables are being purchased by the retailer as inventory to resell. Even though some of the tables may be sold eventually to consumers, for the retailer, these tables are inventory.
