chattel paper

Definition of "chattel paper"
  1. A document that includes a purchaser's commitment to pay and a seller's or lender's security claim over the purchased goods, or a document outlining the terms of the lease of the goods
How to use "chattel paper" in a sentence
  1. Banks often require chattel paper to confirm the borrower's collateral before they agree to lend money.
  2. The leasing company sent the lessee the chattel paper outlining the lease terms and conditions.
  3. In securing a loan for an automobile, a borrower might need to submit a chattel paper depicting their repayment duty and the lender's interest in the vehicle as collateral.

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