The UCC gives special treatment to security interests in most consumer goods. Merchants cannot file financing statements for every consumer good they sell, so the Code provides that a purchase money security interest (PMSI) in consumer goods perfects automatically, without filing. However, the rules for perfection differ slightly for security interests in movable goods, such as boats. Because boats, cars, and motor vehicles are numerous and mobile, most states have created special laws to deal with security interests in these goods. Ken should check his state's laws, but in most states, a security interest is noted directly on the boat's certificate of title.
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