All loans brokered by Bordeaux Cellars are structured as chattel mortgages.
A chattel mortgage is a mortgage over moveable property (rather than real property/real estate). Chattel mortgages in England and Wales are a form of security interest (or “collateral”) for lenders.
To give effective security the chattel mortgage must be in the statutory form prescribed by the Bills of Sale Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882.
Unlike a mortgage over real property a chattel mortgage is not a lien over the property provided as security. In a traditional mortgage, the lender may take possession of the property that serves as security if the loan is in default. With a chattel mortgage, the legal relationship is reversed. Instead ownership of that property passes to the lender for the term of the mortgage.
The transfer of ownership is conditional and gives the lender the powers (and responsibilities) set out in the mortgage deed. Once the mortgage (loan) is repaid the borrower resumes full control and ownership of the chattels.
All loans arranged by Bordeaux Cellars are by a
Loan Agreement and Chattel Mortgage Deed Over Wine.
These are registered with the Royal Courts of Justice, Strand, London and fully comply with the Bills of Sale legislation.