Q&As

What are the priority rules as regards bills of sale over the same chattel?

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Produced in partnership with Anna Medvinskaia of Gough Square Chambers
Published on LexisPSL on 20/07/2016

The following Banking & Finance Q&A produced in partnership with Anna Medvinskaia of Gough Square Chambers provides comprehensive and up to date legal information covering:

  • What are the priority rules as regards bills of sale over the same chattel?
  • What is a bill of sale?
  • What are the priority rules in relation to bills of sale?

What are the priority rules as regards bills of sale over the same chattel?

What is a bill of sale?

A bill of sale is a document that transfers ownership of goods from one person (‘X’) to another (‘Y’) as security for a loan from Y, whilst retaining possession of the goods. X regains ownership of the goods upon repayment of the loan. Bills of sale are similar to mortgages, but unlike mortgages, they are secured on moveable tangible goods ie chattels. The vast majority of bills of sale today take the form of ‘logbook loans’, whereby the borrower transfers to the lender ownership of his existing vehicle, whilst continuing to use it.

Bills of sale are governed by two Victorian statutes—the Bills of Sale Act 1878 (BSA 1878) and the Bills of Sale (1878) Amendment Act 1882 (BSA(1878)AA 1882), although bills of sale have existed at common

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