Chattel Mortgage
This Chattel Mortgage is a form of mortgage security where specific moveable property is used as security for a loan. The assets subject to the security are identified chattels listed in Schedule 1 to the agreement.
What does Chattel Mortgage do?
It creates security over specified chattels to support repayment of a loan.
What does Chattel Mortgage cover?
This Chattel Mortgage takes security over the chattels by way of:
- A legal mortgage
- A fixed charge
- An assignment of the benefit of relevant contracts (particularly insurance arrangements) relating to the chattels
It is created as a deed and evidences the intention of the parties to transfer title to the chattels until the debt has been repaid.
Depending on the nature of the secured chattels, it may be necessary to perfect title to the security by registering with Companies House or on certain asset registers.
When should you use Chattel Mortgage?
Use this template where a company is providing security over moveable property. It is not suitable for individuals and personal chattels.
This template has been drafted in as basic a form as possible. As security is a complex area of law with many different considerations, independent legal advice should be considered whenever you are contemplating taking a security charge.
Other statutory note
The execution provisions of this template are compliant and consistent with the requirements of the Land Registry for prescribed form deeds introduced from 20 September 2019.
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