CHATTEL PAPER

CHATTEL PAPER

chattel paper. A writing that shows both a monetary obligation and a security interest in or a lease of specific goods. UCC ¡ì 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. [Cases: Secured Transactions 88, 142. C.J.S. Secured Transactions ¡ì¡ì 59, 90.]

¡° ¡®Chattel paper¡¯ means a record or records that evidence both a monetary obligation and a security interest in or a lease of specific goods or of specific goods and software used in the goods. The term does not include a charter or other contract involving the use or hire of a vessel. If a transaction is evidenced both by a security agreement or lease and by an instrument or series of instruments, the group of records taken together constitutes chattel paper.¡± UCC ¡ì 9-102(a)(8).

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 ¡ì 9-102(a)(31).

tangible chattel paper. Chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium. UCC ¡ì 9-102(a)(78).


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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.