Which of the following best describes chattel paper?

Chattel paper is defined in the Uniform Commercial Code (UCC) and generally refers to a record that evidences both a monetary obligation and a security interest in specific goods. This means that chattel paper typically involves a transaction where there is a promise to pay and an interest in personal property that serves as collateral for that obligation.

In practice, chattel paper often takes the form of lease agreements or conditional sales contracts where the details of the obligation and the items securing that obligation are clearly outlined. This dual nature—incorporating both a financial promise and a security interest—distinguishes chattel paper from other types of documents related to goods or financial transactions.

The other options lack key characteristics that define chattel paper. A written record of ownership pertains more directly to title documents rather than an obligation tied to a security interest. Documents regarding tangible goods might refer to various forms of inventory or receipts but do not capture the essence of the financial and secured components of chattel paper. A ledger of business transactions is more about record-keeping and does not demonstrate the specific obligations or interests that chattel paper embodies. Thus, the choice correctly identifies the comprehensive function of chattel paper in secured transactions.