An antiquated term for a mortgage on personal goods (as opposed to real estate) where the lender holds an interest in the propery as security for the loan. Today these arrangements are referred to as "security agreements".
Definition from Nolo’s Plain-English Law Dictionary
An old term for an arrangement under which an item of personal property (chattel) serves as security (collateral) for a loan taken out to buy the item.Like a mortgage on a house, this was essentially a mortgage on something other than real estate. These agreements are now generally referred to as security agreements and are governed by the Uniform Commercial Code.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm