Chase Commercial Corporation v. Datapoint Corporation

In Chase Commercial Corporation v. Datapoint Corporation, 774 S.W.2d 359 (Tex. App.-Dallas 1989, no writ), NTD leased computer equipment from Datapoint, and Datapoint assigned the leases to Chase Commercial. Id. at 361. Chase Commercial argued that chapter nine of the code protected NTD, and did not protect Datapoint. Id. at 363. Specifically, Chase Commercial contended "that the strictures of chapter 9 concerning a creditor's duty to dispose of the collateral in a reasonable manner simply do not apply to the action between Chase and Datapoint." Id. The Court disagreed. Id. The contractual arrangement between Datapoint, Chase Commercial, and NTD was a financing arrangement. Id. The Court concluded a seller of chattel paper, who owes other performance by way of repurchase of paper from its assignee, is a "debtor" under the code. Id.