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Simple English definitions for legal terms

chattel paper

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A quick definition of chattel paper:

Chattel paper is a special document used when someone wants to sell something on credit but still keep some ownership of it. It has to show that the buyer owes money to the seller and that the seller still has some rights to the thing being sold. It used to be a physical paper, but now it can also be electronic.

A more thorough explanation:

Chattel paper is a legal document used in secured transactions to sell property on credit while still keeping some interest in the property. It is important that the document shows:

  • A monetary obligation from Party A to Party B
  • A security interest or other interest retained in the property by Party B

Chattel paper can be physical or electronic, and it is authorized by UCC §9-105.

Example 1: John wants to buy a car from Jane, but he cannot pay the full amount upfront. They agree that John will pay Jane in installments over the next two years. To secure the transaction, Jane creates a chattel paper that shows John's monetary obligation to her and her retained interest in the car until John pays off the debt.

Example 2: Sarah wants to buy a new computer for her business, but she does not have enough money to pay for it upfront. She decides to finance the purchase and signs an electronic chattel paper that shows her obligation to the lender and the lender's retained interest in the computer until Sarah pays off the debt.

These examples illustrate how chattel paper is used to secure transactions where one party sells property on credit while still retaining some interest in the property until the debt is paid off.

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Dkk
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SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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