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Simple English definitions for legal terms

Purchase-money security interest

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A quick definition of Purchase-money security interest:

A purchase-money security interest, or PMSI, is a type of security interest that applies to goods that were bought with borrowed money. This means that the lender has a right to take possession of the goods if the borrower fails to repay the loan. It's like when you borrow money from a friend to buy a toy, and they have the right to take the toy back if you don't pay them back.

A more thorough explanation:

Definition: A purchase-money security interest (PMSI) is a type of security interest that applies to goods that are purchase-money collateral. This means that the security interest is created when a borrower uses the loan proceeds to purchase specific goods, and the lender takes a security interest in those goods to secure the loan.

Example: Let's say you want to buy a car, but you don't have enough money to pay for it outright. You go to a bank and take out a loan to buy the car. The bank takes a PMSI in the car, which means that if you default on the loan, the bank can repossess the car to satisfy the debt.

Another example: You want to buy a new computer for your business, but you don't have the cash to pay for it. You take out a loan from a lender, and the lender takes a PMSI in the computer. If you default on the loan, the lender can repossess the computer to satisfy the debt.

These examples illustrate how a PMSI works. The lender takes a security interest in the specific goods that are being purchased with the loan proceeds. If the borrower defaults on the loan, the lender can repossess the goods to satisfy the debt.

Purchase-money collateral | Pure per stirpes

General

General chat about the legal profession.

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TruthTheX

19:15

Ty me too 🙏

TruthTheX

19:15

@Silver: if you want to practice in IL then there’s likely no better school than the in state schools

BankruptcyAndRestructuringLawIsCool

19:53

@SpectacularDefiantMouse: yeah, like condemnedpuffygnome, I'm not really preparing for law school by taking some courses or anything like that. The only way I'm going to be preparing is by getting myself into a rhythm schedule-wise, well enough in advance of the first day of classes, that I think will be necessary for me to do well 1L.

BankruptcyAndRestructuringLawIsCool

19:54

I'm very much not in rhythm now. lol. But I've 3-ish months.

BankruptcyAndRestructuringLawIsCool

19:55

I've got*

jb2028

19:55

@Silver: Cost of attendance is what matters. $37K in-state tuition = $47K sticker price with a $10K scholarship elsewhere, $70K sticker with a $40K scholarship is better than either, $40K sticker with a $0 scholarship worse than both.

jb2028

19:55

(Assuming placement etc. is comparable)

BankruptcyAndRestructuringLawIsCool

19:57

Congrats on Harvard, jb2028. Any reason you applied to A&M but not Texas at Austin? Seems odd.

jb2028

19:58

@BankruptcyAndRestructuringLawIsCool: Family connection, they gave me a CAS waiver so it was free

BankruptcyAndRestructuringLawIsCool

20:00

Ah, gotcha.

BankruptcyAndRestructuringLawIsCool

20:04

Question for the chat about judicial internships (not externships). My understanding is that judicial internships (as opposed to externships) during the summer are unpaid. How, then, do people who get them pay living expenses during the summer? Do they just make loans stretch for 12 months when they're only meant for 9? I heard that some people supplement the internship with, e.g., a research assistant position with a law professor. But would such a person both do the internship and the RA position at the same time? And if so, is that too much work or feasible?

BankruptcyAndRestructuringLawIsCool

20:04

I don't know what the workload is really like for judicial internships and RA positions.

BankruptcyAndRestructuringLawIsCool

20:05

Also curious what other things people might do to supplement an unpaid judicial internship over the summer with something paid.

jb2028

20:20

@BankruptcyAndRestructuringLawIsCool: Many schools will provide some type of stipend for unpaid summer roles with a public interest employer (defined broadly, often includes any gov or judicial job)

BankruptcyAndRestructuringLawIsCool

20:35

Right, I thought so. At BU, though, it appears that what's called BU's public interest project grant is not available to supplement judicial internships. And I think its public service summer funding is also limited. Oh well.

jb2028

21:13

@BankruptcyAndRestructuringLawIsCool: FWIW they allude to some type of funding ("BU Law has implemented separate funding sources for judicial interns") in this packet https://www.bu.edu/law/files/2023/11/Public-Service-Summer-Funding-Applicant-Packet-2024.pdf

jb2028

21:13

Although they don't give details, and as you note they don't guarantee funding to everyone (which is in line with other $ they offer, e.g. the LRAP)

TruthTheX

21:14

Anyone know how hard it is to do pro bono work as a 1L for judges or fed gov in general in the D.C. market

TruthTheX

21:14

Idk much about pro bono opportunities period but thinking I wanna try to get some work experience as soon as humanly possible

TruthTheX

21:14

When I begin law school I mean

jb2028

21:15

Lines up with BU's limited endowment: $81K per student a few years ago, i.e., enough to support a payout of about $3,250 per student per year at a 4% payout rate https://leiterlawschool.typepad.com/leiter/2022/05/per-student-value-of-law-school-endowments-2021.html

jb2028

21:17

Seems like they're trying to compete with other schools on program headlines (we fund X, Y, and Z and we have an LRAP) but the endowment can't really support that, so they have all these programs but don't guarantee funding. Would not rely on that if you have alternatives.

BankruptcyAndRestructuringLawIsCool

21:19

Thanks for those links. I'll give the public service summer funding information packet, in particular, a careful read. But yeah, your takeaway seems right.

KnowledgeableRitzyWasp

22:33

i could really use some fried chicken right now

KnowledgeableRitzyWasp

22:34

kfc or popeyes

KnowledgeableRitzyWasp

22:34

or korean with gochujang

KnowledgeableRitzyWasp

22:35

i might order some gochujang sauce on amazon and cook some air fried chicken breast filets, they’re really good

KnowledgeableRitzyWasp

22:35

just letting you guys know :)

Mohammed

0:14

Where I can find the definition of the false-endowment?

jb2028

11:14

@Mohammed: False-endowment?

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