Question

A chattel mortgage is secured with which of the following?

Select one:
a. A mortgage backed security
b. Personal property
c. The borrower's principal residence
d. An income producing property

Answer 1

A chattel mortgage is a loan agreement secured with personal property owned by the borrower.

Step-by-step explanation:

A chattel mortgage is a loan agreement where the security for the loan is a piece of personal property owned by the borrower. This is in contrast to a traditional mortgage, where the loan is secured by real estate, such as the borrower's principal residence or an income-producing property. In a chattel mortgage, the lender has a lien on personal property, such as machinery, vehicles, or equipment, and if the borrower defaults on the loan, the lender can repossess the chattel to recover the outstanding loan amount.