When does automatic perfection occur upon attachment?

Automatic perfection occurs upon attachment specifically for a purchase-money security interest (PMSI) in consumer goods. This means that when the secured party provides financing for a debtor to acquire goods that are used primarily for personal, family, or household purposes, the security interest automatically becomes perfected as soon as it attaches, without the need for any further steps such as filing a financing statement.

This automatic perfection is significant because it grants the secured party priority in the consumer goods over other creditors without requiring additional action. In the context of secured transactions, a PMSI is particularly relevant because it serves to encourage lenders to provide credit by rendering their interest in the collateral more secure right from the moment of attachment.

In contrast, the other options do not correctly describe situations where automatic perfection occurs upon attachment. For example, while security interests in commercial goods may require additional steps to achieve perfection, they do not automatically perfect upon attachment. Similarly, the status of the debtor (as an individual or otherwise) does not influence the rules governing automatic perfection, making these other choices incorrect.