The older version gives a six-factor test to determine if a secured party has control of electronic chattel paper
, while the 2013 version retains the six-factor test, further adding a general test to observe the secured party to whom the chattel paper
Among specific topics are leases of goods, perfection by possession, perfection on investment property and deposit accounts, sales and other transfers of collateral, chattel paper
and account financing, and the foreclosure sale.
This is significant not only in adding to the weight of the evidence in general, but also because in addition to proving delivery of notices, factors must exercise 'control' over documents such as electronic chattel paper
to ensure their enforceability under Article 9 of the Uniform Commercial Code.
For instance, in FDIC v Herald Square Fabrics Corp, (15) the court said that because Article 9 did not cover the sale of chattel paper
, the transaction at issue was subject to what is now the pre-revision version of UCC section 1-206 statute of frauds requirement as opposed to the enforceability requirements set out in section 9-203 of the UCC.
is a form of agreement, common in both consumer and business transactions that evidences both a monetary obligation and a security agreement in or lease of identified goods.
For example, the two laws apply to the sale and leasing of goods, but not to the creation of security interests in or the sale of chattel paper
(secured leasing transactions).
The Lender has a first security interest in all accounts, chattel paper
, goods (including inventory and equipment), instruments, investment property, documents, and general intangibles, letter of credit rights, commercial tort claims, deposit accounts, and the proceeds thereof.
Paper auto contracts are generally considered tangible chattel paper
under the UCC and perfection can be achieved through the filing of UCC financing statements as well as by actual physical possession of the contracts.
The Notes will be secured by a senior lien on substantially all of the assets (other than accounts receivable, letter of credit rights, inventory, deposit accounts, securities accounts, instruments and chattel paper
, general intangibles, records related to any of the foregoing, proceeds and products of the foregoing and certain assets related thereto and specified excluded assets) owned by the Company and the guarantors from time to time, and by a junior lien on accounts receivable, letter of credit rights, inventory, deposit accounts, securities accounts, instruments and chattel paper
, general intangibles, records related to any of the foregoing, proceeds and products of the foregoing and certain assets related thereto owned by the Company and the guarantors from time to time.
The electronic signatures and eContracts managed by our software provide authenticity and compliance for dealers and lenders under the legislation governing electronic signatures, as well as transfer of ownership of electronic chattel paper
for subsequent investors in the secondary markets.
eOriginal software provides advanced security, strict access controls, audit procedures, and full compliance with the rigorous legal and regulatory requirements governing legal recognition of electronic signatures and eContracts as electronic chattel paper
(has never been included-must be considered real