An interest in property created by the operation of law or by agreement to repay a loan; a lien on personal property created by an agreement. purchase-money security interest. Interest taken by the collateral's seller, such asan automobile. It is a purchase-money security interest, created by a bank, allowing one to pay off the cost of a car on an installment basis while enjoying its use. The bank retains the title until the full amount (along with interest) has been paid. n. sedition An acti...