- to pledge to a creditor as security without delivering over; mortgage.
- to put in pledge by delivery, as stocks given as security for a loan.
Origin of hypothecate1
Examples from the Web for hypothecation
His credit was almost unlimited, and he could always raise as much money as he liked on an hypothecation of next year's wool.Station Amusements
He raised money for immediate needs by hypothecation of the state securities.Civil War and Reconstruction in Alabama
Walter L. Fleming
Dettermain and Newson had declined to undertake the hypothecation of his annuity.The Adventures of Harry Richmond, Complete
He told briefly the details of the transaction; even the hypothecation of the Parsons bonds.Unleavened Bread</p>
- (tr) law to pledge (personal property or a ship) as security for a debt without transferring possession or title
- to allocate the revenue raised by a tax for a specified purposeSee also bottomry
Word Origin and History for hypothecation
1680s, from hypothecat-, past participle stem of Medieval Latin hypothecare, from Late Latin hypotheca, from Greek hypotheke "a deposit, pledge, mortgage," from hypo- "down" + tithenai "to put, place" (see theme). Related: Hypothecated; hypothecating; hypothecation.