| Purchase-money security interests: General; consumer-goods |
| transactions; inventory. Section 9-103 [Maine cite section 9- |
| 1103] substantially rewrites the definition of purchase-money |
| security interest (PMSI) (although the term is not formally |
| "defined"). The substantive changes, however, apply only to non- |
| consumer-goods transactions. (Consumer transactions and |
| consumer-goods transactions are discussed below in Comment 4.j.) |
| For non-consumer-goods transactions, Section 9-103 [Maine cite |
| section 9-1103] makes clear that a security interest in |
| collateral may be (to some extent) both a PMSI as well as a non- |
| PMSI, in accord with the "dual status" rule applied by some |
| courts under former Article 9 (thereby rejecting the |
| "transformation" rule). The definition provides an even broader |
| conception of a PMSI in inventory, yielding a result that accords |
| with private agreements entered into in response to the |
| uncertainty under former Article 9. It also treats consignments |
| as purchase-money security interests in inventory. Section 9-324 |
| [Maine cite section 9-1324] revises the PMSI priority rules, but |
| for the most part without material change in substance. Section |
| 9-324 [Maine cite section 9-1324] also clarifies the priority |
| rules for competing PMSIs in the same collateral. |
