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Glossary term

Chattel Mortgage

Definition

A chattel mortgage is a loan backed by movable property — like a tractor or livestock — instead of by real estate.

Technical definition

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.

Why it matters

It lets farmers borrow against equipment and livestock they own or are buying, separate from any land they hold.

Example

Financing a used combine secured by the combine itself is a form of chattel mortgage.

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