hypothecate

(redirected from hypothecated)
Also found in: Dictionary, Thesaurus, Legal.

Hypothecate

To pledge an asset as collateral on a loan without the lender taking possession of the collateral. It especially applies to mortgages: the borrower hypothecates when he/she pledges the house as collateral for payment of the mortgage, or he/she may hypothecate the mortgage in order to borrow against the value of the house. In both situations the borrower retains the house, but the lender has the right to take possession if the borrower does not service the debt. Hypothecation also occurs in trading: a broker will allow an investor to borrow money to purchase securities with those securities as collateral. The investor owns the securities but the broker may take them if the debt is not serviced, or if the value of the securities falls below a certain level. See also: Foreclosure, Margin account.

hypothecate

To pledge securities as collateral for a loan without giving up ownership of the securities. See also rehypothecate.

hypothecate

To give a security interest in specific real or personal property while retaining possession of the property. Contrast with a pawnshop, in which one surrenders possession of the security,or a loan against negotiable securities such as stocks and bonds,which could be sold by the borrower if the lender did not require possession in itself.

References in periodicals archive ?
This pensioners' Olympics protest may fizzle out - or become a famous cause - but it is a reminder that hypothecated taxes are no more virtuous than other taxes.
All common shares and Broker Warrants issued by Neptune pursuant to this private placement are subject to a restriction pursuant to which they cannot be sold, transferred, hypothecated or otherwise traded for a four (4) month period following their issuance.
Lack of hypothecation can lead to fudging the issue because local authorities are able to transfer money to other budget areas, whereas in England money that is clearly hypothecated for education and different sectors of education goes to those areas.
Hypothecated tax: An extra tax that we pay that is earmarked for the health service.
reports that on June 25, 1998, it has transferred to a wholly-owned subsidiary created for such purpose, Granmont Realties Ltd, the whole of its real estate development projects hypothecated in favour of the most important of its hypothecary creditors, in consideration for the assumption by such subsidiary of its liabilities secured by the assets so transferred.
FURTHERMORE, the FFRRG has recommended retaining the chairman's casting vote that ensures racing's representatives can be outvoted, has given an extra seat to the Bookmakers' Committee, has failed to recommend that bookmakers must supply their turnover figures, that revenue should be hypothecated, that the levy should be paid on overseas racing and that the Levy Board's powers to question bookmakers' declarations should be strengthened.
The money would need to be hypothecated to clearly defined projects to help develop the city and the priorities of the business community, such as local transport priorities or skills delivery.
The common shares issued pursuant to the private placement may not be sold, transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until January 27, 2005 without the prior written approval of the TSX Venture Exchange and compliance with all applicable securities legislation.
Tenders are invited for Hypothecated movable assets comprising of maruti alto lx taxies located at khasara no.
Auction are invited for Primary-all that the fixed assets of the company including hypothecated plant and machinery and spares erected , factory land and buildings and structures there on situated at plot bearing no.
Additionally, the Fund may not be directly or indirectly sold, assigned, transferred, pledged, hypothecated, disposed or encumbered, in whole or in part, except as provided in the applicable limited partnership agreement of the Fund.
Let's get used to it, this government, majority or not, has the onerous task of getting the deficit down and all of those people who argue a hypothecated approach to growth by borrowing for investment are simply sabotaging the future for generations.