Chattel paper refers to a document used in secured transactions to sell property on credit while retaining some interest in the property. Chattel paper must show:
- A monetary obligation from Party A to Party B, and
- A security interest or other interest retained in the property by Party B.
While traditional chattel papers were physical, UCC §9-105 authorizes the use of electronic chattel paper.
[Last updated in July of 2022 by the Wex Definitions Team]