BILL OF SALE. An assignment of per sonal chattels as security for a debt. Per sonal chattels include goods, furniture, and other articles capable of complete transfer by delivery. Trade machinery is deemed to be personal chattels. (See definition, as given in Bills of Sale Act, 1878, of " personal chattels " under CHATTELS.) Bills of sale are ,very rarely taken by bankers as security.
The registration of a bill of sale by a debtor should act as a danger signal to a banker.
Section 4 of the Bills of Sale Act, 1878. interprets the meaning of bill of sale as follows : " The expression ' bill of sale ' shall include bills of sale, assignments, transfers. declarations of trust without transfer. inventories of goods with receipt thereto attached, or receipts for purchase moneys of goods, and other assurances of personal chattels, and also powers of attorney, autho rities, or licences to take possession of personal chattels as security for any debt and also any agreement, whether intended or not to be followed by the execution of any other instrument, by .vhidi a right in equity to any personal chattels, or to any charge or security thereon, shall he con ferred, but shall not include the following documents that is to say, issignments for the benefit of the creditors of the person making or giving the sante marriage settle ments, transfers, or assignments of any ship or vessel, or alI• share thereof, transfers of goods in the ordinary e of business of any trade or calling, bills of sale of goods m foreign parts or at sea, bills of lading, India warrants, warehouse-keepers' certificates, warrants or orders for the delivery of goods, or any other documents used in the ordinary course of business as proof of the possession or control of goods, or authorising or pur porting to authorise, either by indorsement or by delivery, the possessor of such docu ment to transfer or receive goods thereby represented."
The Bills of Sale Act does not apply to any debentures issued by any mortgage, loan or other incorporated company, and secured upon the capital stock or goods, chattels, and effects of such company (Section 17 of Bills of Sale Act (1878) Amendment Act, 1882).
A bill of sale must be in accordance with the form given in the Schedule to the Bills I of Sale Act (1878) Amendment Act, 1882