CHATTEL MORTGAGE Meaning and
Definition
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A chattel mortgage is a legally binding agreement that grants a lender a security interest in a movable personal property, known as chattel, as collateral for a loan or debt. The term "chattel" refers to any tangible item that is not considered real property, such as vehicles, machinery, equipment, livestock, or inventory. This type of mortgage is common in situations where individuals or businesses require funding for the purchase of movable assets but do not have the necessary capital to complete the transaction.
Under a chattel mortgage, the borrower retains possession and use of the chattel while the lender holds a security interest in it until the debt is repaid in full. In the event of default, the lender has the right to seize and sell the chattel to recover the outstanding debt. The chattel mortgage agreement outlines the terms and conditions of the loan, including the interest rate, repayment schedule, and any penalties or fees.
Chattel mortgages are frequently used in the financing of vehicles and equipment, where the chattel itself serves as the primary collateral. This type of mortgage allows borrowers to access funds without having to rely on traditional forms of personal or business loans, often offering more favorable interest rates and payment terms compared to unsecured loans. It provides a level of security for the lender, as the collateral can be easily identified, evaluated, and monetized if necessary.
Common Misspellings for CHATTEL MORTGAGE
- xhattel mortgage
- vhattel mortgage
- fhattel mortgage
- dhattel mortgage
- cgattel mortgage
- cbattel mortgage
- cnattel mortgage
- cjattel mortgage
- cuattel mortgage
- cyattel mortgage
- chzttel mortgage
- chsttel mortgage
- chwttel mortgage
- chqttel mortgage
- chartel mortgage
- chaftel mortgage
- chagtel mortgage
- chaytel mortgage
- cha6tel mortgage
Etymology of CHATTEL MORTGAGE
The word "chattel" originates from the Old French term "chatel", which means "property" or "possessions". It was later adopted into Middle English as "chattel", referring to moveable property or belongings.
The term "mortgage" has its roots in Latin. In Latin, "mortuus" means "dead", and "gage" means "pledge". The concept behind the Latin term was that if the borrower failed to repay the loan, the property used as collateral would become "dead" to them, transferring to the lender as a form of repayment.
When combined, "chattel mortgage" refers to a type of secured loan where movable personal property, such as vehicles or inventory, is pledged as collateral. This term arose in English law to distinguish it from other types of mortgages that predominantly dealt with land or real estate.
Similar spelling words for CHATTEL MORTGAGE
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