What is personal property security?

Personal property is any tangible or intangible property other than real property (real estate) that is movable and separable from realty, such as fixtures, tools, vehicles and inventory.  Tangible personal property is personal property that has physical existence and can be moved, including all items that are movable when a security interest attaches.  Intangible personal property is personal property that has no physical existence but financial value solely in the rights it conveys, such as receivables, negotiable instruments and securities.  Title to personal property is transferred by bill of sale.

Personal Property → Chattel Paper

Chattel paper is a record that evidences both a monetary obligation and a security interest in specific personal property (goods), in the software or license of software used in the goods, or a lease of specific goods and the license of software used in the leased goods.  Chattel paper is used in secured transactions to transfer personal property on credit while retaining some interest in the property and to show a monetary obligation of the obligor to the obligee as well as a security interest or other interest retained in the property by the obligee.  Electronic chattel paper is an electronic document over which a security interest can be granted under Article 9 of the US Unified Commercial Code (UCC).

Lien Attaching Equipment (Chattel)

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As defined in the Unified Commercial Code (UCC), collateral is property subject to a security interest or agricultural lien and includes accounts, chattel paper, payment intangibles and promissory notes that have been sold; proceeds to which a security interest attaches; and goods that are the subject of a consignment.  Article 9 of the Uniform Commercial Code (UCC 9), which governs security interests in personal property in the US, has been adopted by most states.