Opinion ID: 2584079
Heading Depth: 1
Heading Rank: 3

Heading: purchase money security interest

Text: ¶ 5 Arvest argues that under title 12A, section 9-312 Oklahoma 1991 Statutes, its PMSIs have priority over First Bethany's security interests. A PMSI is defined in section 9-107 as a security interest that is (a) taken or retained by the seller of the collateral to secure all or part of its price; or (b) taken by a person who by making advances or incurring an obligation gives value to enable the debtor to acquire rights in or the use of collateral if such value is in fact so used. Pursuant to this definition, the parties do not contest that Arvest has PMSIs in the two accounts receivable for which it loaned Syntrix money. However, Arvest's PMSIs do not automatically have priority over First Bethany's filed security interest. ¶ 6 The general rule under the OCC is [c]onflicting security interests rank according to priority in time of filing or perfection, whichever is earlier. Okla. Stat. tit. 12A, § 9-312(5) (1991). Section 9-312 allows exceptions to this general rule for PMSIs in inventory and PMSIs in collateral other than inventory. However, the PMSI holder must meet certain requirements in order for its security interest to qualify for section 9-312's superpriority status. Id. at § 9-312.