A chattel mortgage is a loan backed by movable property — like a tractor or livestock — instead of by real estate.
A chattel mortgage is a security arrangement in which movable personal property is pledged as collateral for a loan, with the lender holding an interest until repayment.
It lets farmers borrow against equipment and livestock they own or are buying, separate from any land they hold.
Financing a used combine secured by the combine itself is a form of chattel mortgage.
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