In the context of PMSI, what types of proceeds can obtain super-priority?

A purchase money security interest (PMSI) is a special type of security interest that gives the secured party heightened rights in certain scenarios, particularly concerning the proceeds of the collateral. Under the Uniform Commercial Code (UCC), PMSIs can be given super-priority status if they meet specific requirements, allowing them to be prioritized over other claims in certain types of proceeds.

The types of proceeds that can obtain this super-priority include instruments, chattel paper, and identifiable cash proceeds. These are all categories that are specifically defined within the UCC. Instruments are negotiable instruments like promissory notes, while chattel paper combines a monetary obligation with a security interest in specific goods. Identifiable cash proceeds refer to cash resulting from the sale of the collateral, allowing easier tracing of the source of the cash.

In contrast, inventory and fixed assets are classes of collateral that do not inherently allow for the super-priority of PMSIs on their own unless certain conditions are met. Accounts receivable and real property fall outside the super-priority rules for a PMSI since they are governed differently under the UCC. Finally, stating that any form of collateral as defined by law qualifies for super-priority is overly broad and does not accurately reflect the specific types