Legal Definitions - electronic chattel paper

Electronic chattel paper is a type of legal document that shows both a monetary obligation and a security interest in or a lease of specific goods. It is similar to traditional chattel paper, which is used in consumer transactions when someone buys goods on credit and promises to pay for them by executing a promissory note.

For example, if you buy a car on credit, the seller may retain a security interest in the car until you pay off the loan. The legal document that shows this agreement is called chattel paper. If the same agreement is made electronically, it is called electronic chattel paper.

Another example of electronic chattel paper is when a company leases equipment to another company and retains a security interest in the equipment until the lease is paid off. The legal document that shows this agreement is also considered electronic chattel paper.

Overall, electronic chattel paper is a way to legally document agreements related to specific goods and monetary obligations in an electronic format.