Basic Uniform Commercial Code
"Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. In this paragraph, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The term does not include
- charters or other contracts involving the use or hire of a vessel or
- records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
"Instrument" means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary indorsement or assignment. The term does not include
E.g., checks, CDs, etc.
Pure intangibles are rights that have no physical embodiment.
- for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of,
- for services rendered or to be rendered,
- for a policy of insurance issued or to be issued,
- for a secondary obligation incurred or to be incurred,
- for energy provided or to be provided,
- for the use or hire of a vessel under a charter or other contract,
- arising out of the use of a credit or charge card or information contained on or for use with the card, or
- as winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State.
The term includes health-care-insurance receivables. The term does not include
- rights to payment evidenced by chattel paper or an instrument,
- commercial tort claims,
- deposit accounts,
- investment property,
- letter-of-credit rights or letters of credit, or
- rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
E.g., payment intangibles, non-embedded software, etc.