200012 Lecture Notes - Lecture 23: Federal Aviation Administration, Chattel Mortgage, Property Law
3 May 2019
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Document Summary
Chattel mortgage is a loan arrangement in which an item of movable personal property acts as security for a loan. The movable property, or chattel, guarantees the loan, and the lender holds an interest in it. This differs from a conventional mortgage in which the loan is secured by a lien on real, stationary property. Chattel mortgages are referred to as security agreements in some areas of the country. The terms "personal property security," "lien on personal property," or even "movable hypothec" are also synonyms for a chattel mortgage used in different jurisdictions around the world. Vehicles, airplanes, boats, farm equipment, and manufactured homes are all good examples of assets that are often financed using chattel mortgages. These mortgages must be registered in a public registry so third parties can be aware of them before entering into financing agreements with potential borrowers who want to put the property up as security for another loan.
