Chattel Mortgage – an instrument which conveys a mortgage on personal property on installment, whereby the seller transfers title to the buyer but retains a lien securing the unpaid balance

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chattel mortgage:

1. A mortgage on goods purchased on installment, whereby the seller transfers title to the buyer but retains a lien securing the unpaid balance.  *  Chattel mortgages have generally been replaced by security agreements, which are governed by Article 9 of the UCC
Cf. retail installment contract under CONTRACT. [1]

1. An instrument whereby an owner transfers title to, or creates a lien upon, personal property as security for the performance of an act, which is usually the payment of money, with the title or lien subject to  defeasance upon performance.  15 Am J2d Chat Mtg § 1; more summarily defined, with accuracy, under the law of some jurisdictions, as a bill of sale with a defeasance clause.  15 Am J2d Chat Mtg § 1.

Constituting an interest in the mortgaged property.  Moody v Shuffleton, 203 Cal 100, 262 P 1095. [2]

1. A mortgage on personal property.  Prior to the Uniform Commercial Code, a chattel mortgage was the preferred form of agreement for creating a security interest in goods.
     See secured transaction; security agreement. [3]


Disclaimer: All material throughout this website is compiled in accordance with Fair Use.

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6

[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition
 by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]: Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine 
(James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.


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