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snow_tiger [21]
3 years ago
15

Pharm-Ace holds a patent on a drug. Pharm-Ace used the patent (evidenced by the patent certificate) to secure a $1 million loan

from First Bank. The patent is chattel paper.True / False.
Health
1 answer:
Snowcat [4.5K]3 years ago
3 0

Answer:

False

Explanation:

A chattel paper is a record which shows that or reveals that there is a monetary obligation and security interest in particular goods. In this case, Pharm-Ace holds a patent on a drug and have used it to secure a loan. The patent in this case serves as a collateral as it can be sold by the bank to recover their money back, but it is not a chattel paper because there isn't a security interest.

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