In this chapter, we take into account the security interests in personal property and warranty. In the next chapter, we look at mortgages and non-consensual instructions. Chattel is another word for goods. Chattel paper is a record (paper or electronic) that demonstrates both “a financial obligation and an interest in security, either for certain goods or for a lease for certain goods”. Single Commercial Code, § 9-102, paragraph 11. Paper is a precious asset and can be used itself as collateral. For example, the Creditor Car Company David Debtor sells a car and takes back a note and a guarantee contract (this is a purchase money guarantee contract; the ticket and the guarantee contract are cat paper). The document is not yet a certainty; it`s the automobile. Now creditor Car Company buys a new hydraulic lift from Lift Co. and grants Lift Co.