Embodiment of Rights in Goods and the Concept of Chattel Paper
Thomas H. Jackson · The University of Chicago Law Review · 1983
7 Drill presses are not "mobile goods" within the meaning of section 9-103(3).See In re Dennis Mitchell Indus., 419 F.2d 349, 356-58 (3d Cir.1969) (en banc).Industrial, therefore, will be required to file where the goods are located or expected to be located according to the terms of section 9-103(1)(a)-(c), (4).s Thus, the two elements required under section 9-105(b) for the creation of chattel paper are present.Moreover, once the drill presses are delivered to Manufacturer, this writing will be indispensable, as it will be necessary for Industrial to have a security agreement signed by Manufacturer, as debtor, in order to have any security interest at all.§ 9-203(1)-(2).See generally Pontchartrain State Bank v. Poulson, 684 F.2d 704, 705-07 (10th Cir.1982) (discussion of elements of § 9-203); In re Bollinger Corp., 614 F.2d 924, 926-27 (3d Cir.1980) (same).This requirement of a writing may be thought of as fundamental to permitting the creation of a category of collateral such as chattel paper.Without this writing, the effort to give substantive effect to physical possession of the paper would be meaningless.Cf.U.C.C. § 9-105(b) (1952) (defining chattel paper as "a security agreement or lease of a type which is in ordinary course of business transferred by delivery with appropriate indorsement or assignment").9 "The creation of a security interest in chattel paper requires at least three parties who take part in two consecutive transactions."Levie, supra note 2, at 936.