What is considered chattel paper?
Chattel paper is a piece of writing that shows evidence of two things: a monetary obligation and a security interest in, or lease of, specific goods. An equipment lease is a good example of chattel paper.
What is an example of chattel paper?
Chattel paper is a writing that indicates that the holder is owed money and has a security interest in valuable goods associated with the debt. For example, assume that a car dealership has sold a car on financing to a buyer and has retained the title as security.
Are contracts chattel paper?
This writing constitutes the “chattel paper,” which may consist of a conditional sales contract, a chattel mortgage, a security agreement or a chattel lease,2 with or without an accompanying negotiable instru- ment. Such transactions are referred to as chattel paper financing.
Is an equipment lease chattel paper?
In the simplest terms, the vast majority of equipment leasing and finance transactions originated within our industry are reflected by one or more documents constituting chattel paper. In both contexts, the UCC requires the assignee to perfect its interest in the chattel paper.
What is a payment intangible under the UCC?
The Uniform Commercial Code defines a payment intangible as “a general intangible under which the ac- count debtor’s principal obligation is a monetary obligation.” A general intan- gible “means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit …
Is a furnace a chattel or fixture?
A home’s furnace may be considered a fixture since it’s attached to the home and can’t be easily removed without damaging the property. If the furnace is rented however, it may be considered a chattel that is owned by the leasing company.
Are cars chattels?
Personal chattels are, in other words, personal possessions and include your jewellery, computer, phone, camera, furniture, paintings, photographs, car, clothes, household contents and even pets.
Is a promissory note chattel paper?
(a) The promissory note is tangible chattel paper. (b) The sales contract creating an interest in the vehicle to secure the unpaid sales price of the vehicle is tangible chattel paper.
Is chattel paper accounts receivable?
Receivables means the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any other rights or claims to receive money which are General Intangibles or which are otherwise included as Collateral.
How do you get perfect interest in chattel paper?
A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing. (b) [Control or possession of certain collateral.] (3) a security interest in money may be perfected only by the secured party’s taking possession under Section 9-313.
What does payment intangible mean?
A general intangible in which an account debtor’s main obligation is to pay money. Loosely, a non-physical asset that is not easily assessed but manifests itself as an income stream for a given commercial entity.
Are curtains chattels?
The law distinguishes between chattels and fixtures. A chattel is a movable property. A fixture is a chattel that has been fixed or attached and can no longer be easily moved. For example, curtains would be a chattel, whereas a built-in bookcase would be a fixture.
What is the legal definition of 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.
What does UCC-1 mean for chattel paper?
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.
When does a secured party have control of an electronic chattel paper?
(a) [General rule: control of electronic chattel paper.] A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. (b) [Specific facts giving control.]
Who is an account debtor in chattel paper?
Account Debtor: a Person who is obligated under an Account, Chattel Paper or General Intangible.