Norwest-Finance links:
Description Chattel Mortgage / Bill of Sale
A chattel Mortgage or Bill of Sale arrangement is a loan agreement by which money is borrowed to purchase equipment. The borrower provides security for the loan by way of a mortgage to the lender over the equipment financed. The form of the mortgage is a Chattel Mortgage if the borrower is a Company or Bill of Sale if the borrower is an individual. The mortgage is discharged on final payment and the customer retains the equipment.
The interest component of the payments and the depreciation on the equipment are tax-deductable provided the borrower uses the equipment to generate assessable income.
