It is a mortgage on personal property given as a security for the payment of an obligation.
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A. B. C. D.A
The correct answer to the question is A. Chattel mortgage.
A Chattel mortgage is a type of security interest in personal property, which is given to secure the payment of a debt or other obligation. It is a legal agreement between a borrower and a lender, where the borrower pledges the personal property (i.e., movable assets such as cars, boats, equipment, or livestock) as collateral for a loan.
Chattel mortgages are commonly used in business loans, where a borrower needs to purchase equipment or inventory to operate the business. The borrower can use the equipment or inventory as collateral to obtain financing, and the lender will hold a lien on the property until the loan is paid off.
In case of default, the lender has the right to seize and sell the property to recover the amount owed. The borrower has the responsibility to maintain the property and keep it in good condition until the loan is repaid.
Lien is a legal claim against the property to secure a debt, which is similar to a chattel mortgage. However, a lien is a more general term that applies to any property (real or personal), while a chattel mortgage specifically refers to personal property.
Collateral note is a promissory note that includes a pledge of collateral as security for the repayment of the loan. It is similar to a chattel mortgage, but the collateral note includes a written promise to repay the debt, in addition to the pledge of collateral.
Loan application is a request for a loan, which does not involve any security interest in personal property.