Basic Uniform Commercial Code

Chattel Paper


"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

  1. charters or other contracts involving the use or hire of a vessel or
  2. 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.

Mortgages are not chattel papers. They're probably usually instruments.

Chattel papers can theoretically be perfected by either filing or possession. UCC § 9-313.