Chattel Paper – a writing that shows both a monetary obligation and a security interest in or a lease of specific goods

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chattel paper:
(1935)

1. A writing that shows both a monetary obligation and a security interest in or a lease of specific goods. UCC § 9-102(a)(11).  *  Chattel paper is generally used in a consumer transaction when the consumer buys goods on credit.  The consumer typically promises to pay for the goods by executing a promissory note, and the seller retains a security interest in the goods.  See SECURITY AGREEMENT, [1]

1. A writing or writings which evidence both a monetary obligation and a security interest in or a lease of specific goods.  UCC § 9-105(1)(b). [2]

1. As defined by the Uniform Commercial Code, a document that reflects both a debt and a security interest in specific goods.
     See secured transaction. [3]

     UCC § 9-102(a)(11) defines chattel paper as:

     “‘Chattel paper’ means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. . . . The term does not include

(i) charters or other contracts involving the use or hire of a vessel or
(ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.

Various Forms of Chattel Paper:

electronic chattel paper – chattel paper evidenced by a record or records consisting of information stored in an electronic medium and retrievable in perceivable form. UCC § 9-102(a)(31).

tangible chattel paper – chattel paper evidenced by a record or records consisting of information inscribed on a tangible medium.  UCC § 9-120(a)(79).

References:

Disclaimer: All material throughout this website is compiled in accordance with Fair Use.

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6

[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition
 by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]: Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine 
(James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.

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