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Simple English definitions for legal terms
non-purchase-money
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A quick definition of non-purchase-money:
Non-purchase-money refers to a type of loan that is not secured by property obtained through the loan. This means that the loan is not used to purchase the property that is being used as collateral. For example, a non-purchase-money mortgage is a loan that is secured by a property that was not purchased with the loan funds.
A more thorough explanation:
Definition: Non-purchase-money is an adjective used to describe an obligation that is not secured by property obtained through a loan. It is the opposite of a purchase-money mortgage.
Example: A homeowner takes out a home equity loan to pay for a vacation. This loan is considered a non-purchase-money obligation because it is not secured by the property obtained through the loan.
Explanation: The example illustrates the definition of non-purchase-money by showing that the loan is not used to purchase the property that secures the loan. In this case, the loan is used for a vacation, not for buying a home. Therefore, it is not a purchase-money mortgage.