Chattel Paper

Chattel Paper

A writing or writings that evidence both a monetary obligation and a security interest in or a lease of specific goods. In many instances chattel paper will consist of a negotiable instrument coupled with a security agreement. When a transaction is evidenced both by such a security agreement or a lease and by an instrument or a series of instruments, the group of writings taken together constitutes chattel paper.

Cross-references

Secured Transactions.

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References in periodicals archive ?
For example, the collateral can be described as accounts, chattel paper, instruments, inventory, equipment, general intangibles and other categories of personal property.
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.
Chattel paper is a new concept under Australian law.
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.
Chattel paper 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).
5) The goal of securitization is for a debtor, called an "originator," to sell accounts, chattel paper, general intangibles, or instruments to a bankruptcy-remote corporation (sometimes called a "special purpose vehicle" or SPV) set up for the sole purpose of buying this property.
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.
The blanket UCC-1 Financing Statement, which is filed with the Secretary of State, secures "all inventories, chattel paper, accounts, contract rights, equipment and general intangibles" of debtor's business.
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.
Revised Article 9 expands the types of collateral for which a secured party may or must perfect a security interest by control to include deposit accounts, electronic chattel paper, investment property and letter of credit rights.