PMSI does not transfer When Original Security Interest Is Terminated and collateral is used for New Financingt by a new debtor

lien, PMSI, purchase money security interest, security interestTerrance Leeders

"A Purchase Money Security Interest Is Not Refinanced When the Original Security Interest Is Terminated and New Financing Is Used By a New Debtor to Acquire the Same Collateral"

The case of Lewiston State Bank v. Greenline Equipment, LLC, 147 P.3d 951, 61 UCC Rep. Serv. 2d 195 (Ut. App. 2006), holds that a purchase money security interest (pmsi) does not survive its termination when the same collateral is used by a different debtor to obtain new financing.

What happened: a secondary loan...