chattel mortgage
Property-backed debt
A chattel mortgage is a loan secured by movable personal property rather than real estate—vehicles, equipment, livestock, or inventory.
The borrower retains possession while the lender holds a lien until the debt is repaid.
The farmer took out a chattel mortgage on his tractor.
If the borrower defaults, the lender can seize the property.
The term is largely historical in American law, replaced by security interests under the Uniform Commercial Code, but remains current in some countries.
- borrowerOne who takes temporarily
- machineryCollective mechanical equipment
- farm equipmentMachinery for cultivating land
- lienClaim securing debt
- secured loanBorrowing with pledged collateral
personal property · livestock · balloon payment · filing fee · default notice · lender · deficiency judgment · vehicles · repossession · debt collection · appliances · installment loan · furniture · pledge · legal title · title transfer · guarantor · documentation
- mortgageshome loan, fixed-rate mortgages, home loans, adjustable-rate mortgages, down payment
- asset financeleasing, sale-leaseback, hire purchase, collateral loans, residual value
- property rightsownership, property rights, private property, real property, title
- secured debtcollateral, secured loan, lien, tax lien, mechanic's lien
- loansloan, loans, lend, borrow, auto loans
- pledgesvow, promise, I promise, wedding vows, I vow
chattel mortgageunsecured loan
Debt lacking pledged property
unsecured debt · personal loan · signature loan · promissory note · credit card debt