electronic chattel paper

Electronic chattel paper is a digital record that documents a secured transaction involving a tangible asset, like equipment or inventory, along with a secured party’s interest. It combines the proof of ownership (or lien) and the financing agreement into a secure electronic format, making it easier to transfer, enforce, and manage rights without physical documents. Essentially, it is the electronic version of traditional paper security agreements and notes, providing a reliable way to prove security interests in personal property through digital means.