Conditional Sales and Chattel Mortgages

The contract of conditional sale and the chattel mortgage perform a similar economic function. They are the principal devices by which the obligor may enjoy the use and possession of a chattel in winch a security interest is held by another. Either may serve to secure the payment to the vendor of the purchase money, while m Washington the chattel mortgage only may be employed to secure the repayment of a loan or the performance of other obligations. They arose out of different legal concepts, developed along different lines, gave rise to different rights and remedies, but in the form of the two Uniform Acts have achieved a striking similarity.

It is the object of this article to relate the history of these security instruments in the State of Washington, to show the legal consequences of a choice between them, to point out a few of the changes which would result from the adoption of either Uniform Act in this State, and finally to offer for discussion suggestions for a Composite Act covering the entire field of security in personal property.