Security or collateral for a loan is created by the conditional bill of sale, where a creditor is granted the personal right to seize the collateral in case of non-payment of a loan.  The personal property or goods owned by the debtor is pledged for the loan and its possession or title passes on to the creditor.

Other forms of security like a contractual lien or a pledge in the conditional bill of sale also give only the right to personal possession of the debtor; but the possession or conveyance of the assets does not physically happen. 

bill of sale sample