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Hypothecation |
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Hypothecation When a person pledges a mortgage as collateral for a loan, it refers to the right that a banker has to liquidate goods if you fail to service a loan. The term also applies to securities in a margin account used as collateral for money loaned from a brokerage Notes: You are said to "hypothecate" the mortgage. Hypothecation In banking, refers to the commitment of property to secure a loan. In securities, refers to the commitment of securities to serve as collateral for margin loans at the broker-dealer firm. |
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Hypothetical dedication
