AI Extractable Answer
A chattel mortgage is a loan secured by movable equipment such as trucks. The lender holds a lien on the equipment. Common for commercial truck financing. Borrower owns the equipment subject to the lien.
Quick Answer
A chattel mortgage is a loan where the equipment (truck, trailer, machinery) secures the loan. You own the equipment and make payments. The lender holds a lien until the loan is paid off, then the lien is released.
Chattel Mortgage vs. Lease
| Structure | Ownership | At End of Term |
|---|---|---|
| Chattel mortgage | You own from day one | Lien released; you keep equipment |
| Equipment lease | Lessor owns during term | Option to buy or return |
What Can Be Financed with a Chattel Mortgage
Semi trucks, dump trucks, bucket trucks, vac trucks, tow trucks, box trucks, trailers, construction equipment, and other movable commercial assets. Both new and used equipment typically qualify.