conditional bill of sale

Arrangement in which the right of ownership of an asset or property is conditionally conveyed by the owner-borrower (the mortgagor) to the lender (the mortgagee) as security for a loan. The mortgagor usually retains the possession of the property, and has the right to redeem it on repayment of the debt. The mortgagee can apply to the courts for the mortgaged property's possession only if the mortgagor fails to meet the conditions of the mortgage agreement.