chattel paper
- 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
- Banks often require chattel paper to confirm the borrower's collateral before they agree to lend money.
- The leasing company sent the lessee the chattel paper outlining the lease terms and conditions.
- 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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