Question

Marcia buys a $3,000 high-definition plasma television for her home on credit extended by the seller, current city. current city requires marcia to sign a security agreement. current city has a ________ interest in the television that is automatically perfected at the time of the credit sale.

Answer 1

That city has purchase money security interest.
purchase money security interest refers to a type of claiming rights that enables lender to make acquistion towards a certain asset in higher priority than other creditors. This type of rights is really important to secure the lender's profit in case the borrowers fail to return the credit (or went bankrupt)