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Art Finance lends Gala Gallery $1,000,000 to buy a print by Andy Warhol, the print to be collateral for the loan. Gala Gallery will exhibit

Art Finance lends Gala Gallery $1,000,000 to buy a print by Andy Warhol, the print to be collateral for the loan. Gala Gallery will exhibit the print, in hopes of selling it for a profit. Does Art Finance have a PMSI? 


(A) Yes. It provided the value to purchase the collateral. 


(B) No. It has a security interest, but not a purchase money security interest because it was not the seller of the collateral. 


(C) No. A purchase money security interest arises only where the seller of goods retains a security interest to ensure the price is paid. 


(D) No. The painting is inventory, not consumer goods.

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