CASE #2

Sam has just graduated from university and wants to reward himself by buying a Mustang. He finds the perfect car and approaches his bank for a loan. The bank agrees to lend him the money to buy the car and asks him to sign a chattel mortgage to secure the loan. Sam makes the first 12 monthly payments and then misses the next three.Describe the process in which the bank would have taken to secure this chattel mortgage? What are the bank's options upon default?