What is a key characteristic of a PMSI?

A Purchase Money Security Interest (PMSI) is specifically designed to enable a lender to secure a loan that is used directly for the acquisition of collateral. This means that a PMSI is perfected when the debtor acquires the goods on credit where the loan is specifically used for purchasing those goods.

This option accurately reflects that a PMSI secures repayment for only the specific amount borrowed to acquire the collateral, ensuring that the lender has a prioritized claim on that asset if the debtor defaults. This characteristic is key because it distinguishes PMSIs from other types of security interests, which may not be exclusively tied to the value of the collateral purchased.

The other options are misaligned with the definition and structure of a PMSI. For instance, PMSIs do not apply to all types of loans (the first option) and are not limited to real estate transactions (the last option), as they can apply to personal property. Furthermore, a PMSI does not require collateral to be sold; rather, it is focused on the financing of specific purchases. Thus, the essential trait of a PMSI revolves around its direct connection to the financing of the collateral's purchase price.