To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Added in 24 Hours
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.

Chattel mortgage

From Wikipedia, the free encyclopedia

Chattel mortgage, sometimes abbreviated CM, is the legal term for a type of loan contract used in some states with legal systems derived from English law.

Under a typical chattel mortgage, the purchaser borrows funds for the purchase of movable personal property (the chattel) from the lender. The lender then secures the loan with a mortgage over the chattel. Legal ownership of the chattel is transferred to the purchaser at the time of purchase, and the mortgage is removed once the loan has been repaid.

Chattel mortgages may have more particular characteristics in different jurisdictions.


In Australia, chattel mortgages are commonly used by companies, partnerships and sole traders to fund the purchase of cars, commercial vehicles and other business equipment.

Under Australian Taxation Office rules, businesses that account for GST on a cash basis are entitled to claim an Input Tax Credit for all of the GST contained in the purchase price of the chattel on their next Business Activity Statement.

Repayment of chattel mortgages in most Australian states attract stamp duty.

England and Wales

Chattel mortgages in England and Wales are seen as a form of security interest (or "collateral") for lenders in certain financing scenarios. Individuals (broadly, non-incorporated legal persons) may give a chattel mortgage over their personal property; however, it must be in the statutory form prescribed by the Bills of Sale Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882 for it to constitute valid security.

Companies and other corporate entities may give chattel mortgages too over any tangible, movable property as security for a debt obligation. This type of security will usually fall under the category of registrable charges under the Companies Act 2006.

For a chattel mortgage to be a legal mortgage, it must transfer legal title to the chattel (or chattels) to the secured party (typically the lender) and include an express or implied proviso that the legal title will be transferred back to the debtor upon repayment (known as the equity of redemption). (If the chattel mortgage does not meet the statutory requirements for a legal mortgage it may nevertheless be re-characterised as an equitable mortgage or fixed or floating charge.)

Chattel mortgages over certain assets (such as ships and aircraft) are governed by more particular rules.[1]

United States

In the United States, chattel mortgages are referred to as secured transactions. Article 9 of the Uniform Commercial Code governs such transactions in most states.

However, later, some of the first laws on chattel mortgages in the Anglo-American world were passed.[2] These early laws differed from other early laws in that filings and witnesses were required to enforce the security interest to prevent the debtor from fraudulently using the pledged collateral as a security interest in another loan. The issue had been handled differently in Roman law, by allowing the lender to sue a fraudulent debtor, and in Napoleonic law, by banning the transactions.[2][3]

See also


  1. ^ "Chattel mortgage". PLC Glossary. Practical Law Company. Retrieved 9 June 2011.
  2. ^ a b GL Flint Jr, MJ Alfaro. (2004). Secured Transactions History: The First Chattel Mortgage Acts in the Angol-American World Archived May 28, 2010, at the Wayback Machine. WILLIAM MITCHELL LAW REVIEW.
  3. ^ "Hard Money Lenders". Friday, 16 November 2018
This page was last edited on 15 November 2018, at 21:08
Basis of this page is in Wikipedia. Text is available under the CC BY-SA 3.0 Unported License. Non-text media are available under their specified licenses. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. WIKI 2 is an independent company and has no affiliation with Wikimedia Foundation.