chattel paper

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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: 

  1. A monetary obligation from Party A to Party B, and 
  2. 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]