Chattel Mortgage Legal Meaning and Definition

Here is a simplified definition of the legal term Chattel Mortgage.

Chattel Mortgage (noun)

A chattel mortgage is a legal agreement where personal property (chattels), like physical assets (e.g., books, furniture, equipment), are used as security for a loan. The individual or business borrowing money offers these chattels to the lender. If the borrower defaults on the loan, the lender has the right to claim these physical assets.