British Columbia Purchase Money Security Agreement
When you sell inventory on credit to a distributor, make sure you protect your security interest in those goods until you're paid in full under this Purchase Money Security Agreement for BC.
- The contract attaches a purchase money security interest (PMSI) to the goods being sold, which then become collateral under the Agreement.
- The supplier (secured party) extends credit to the customer (debtor) for the purchase of the inventory, and the debtor agrees to pay the purchase amount in a series of instalment payments.
- In return for being allowed to pay over time, the debtor grants the secured party a PMSI over the goods and over the proceeds that will be realized from the goods.
- This is a downloadable legal form intended for use in the Province of British Columbia, Canada.
Last Updated: 31-March-2021