chattel mortgage

Also found in: Dictionary, Thesaurus, Financial, Encyclopedia, Wikipedia.

Chattel Mortgage

A transfer of some legal or equitable right in Personal Property as security for the payment of money or performance of some other act. Chattel mortgages have generally been superseded by other types of Secured Transactions under the Uniform Commercial Code (UCC), a body of law adopted by the states that governs commercial transactions.

The rights of the lender who gives a chattel mortgage are valid only against others who know or should know of the lender's security interest in the property. Since the borrower possesses the property, others cannot realize that a chattel mortgage exists without notice. Each state, therefore, has developed a system for recording instruments showing the existence of chattel mortgages for particular items of property; these records are usually located in the county clerk's office.

If a recording system is in existence a buyer is presumed to know about a mortgage. Once, therefore, the mortgage is properly recorded, the buyer obtains the debt in addition to the property.


Recording of Land Titles.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

chattel mortgage

n. an outmoded written document which made a chattel (tangible personal asset) security for a loan of a certain amount. It has been replaced in most states by a security agreement, the form of which is designated in a Uniform Commercial Code as UCC-1. These security agreements must be filed with a specific public agency (e.g. a state Secretary of State) to protect buyers of the personal property and lenders making loans secured by the property. (See: UCC-1)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

chattel mortgage

(US) a mortgage on moveable personal property.
Collins Dictionary of Law © W.J. Stewart, 2006
Mentioned in ?
References in periodicals archive ?
In addition to this major restructuring of the Shasta County ranch obligation, Louis and Beth Joerger repeatedly utilized chattel mortgages with livestock and ranch equipment as collateral to secure short-term loans.
It said chattel mortgage will be registered with the local Registry of Deeds.
Rey argued that he has nothing to do with Jay's debt and chattel mortgage. He said that the payment by Mon to release the mortgage on Jay's house is a matter between Mon and Jay.
Creditors whose credits are secured by a duly registered real-estate mortgage or chattel mortgage or duly constituted pledge are no longer required to file their claims against the assets of the closed bank.
On the ground, apart from its unparalleled quick processing turnaround time commitments, the branches were able to offer added incentives to eligible borrowers in the form of free 1st year comprehensive insurance, chattel mortgage fees and gas allowance for auto loans; and free appliance packages for home loans.
For loan amounts of P500,000 and up, with a minimum term of 36 months, loan applicants during the event will get free comprehensive car insurance, free chattel mortgage fee, lower interest rates, and gas cards worth P1,500.
Does an all-in downpayment price mean inclusive of registration fees, chattel mortgage fees and insurance?
The January 2008 report by the Sandiganbayan sheriff says recovered were: P500 million in "promissory note and chattel mortgage"; 450 million shares of Waterfront Philippines, P427.5 million; 300 million Wellex Industries shares, P84 million; cash in an investment account, P95.7 million.
Chattel mortgage (price higher at the dealer by about P2,000 to 3,000), insurance and vehicle registration are subsidized by the dealer but while it may seem easy on the pocket, remember the add-on rate that you'll have to bear for 60 months.