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Hypothecation |
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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. Hypothecation. Hypothecation means pledging an asset as collateral for a loan. If you use a margin account to buy on margin or sell short, for example, you pledge securities (stocks, bonds, or other financial instruments) as collateral for the debt. If the brokerage firm issues a margin call that you don't meet, it can sell those securities to cover its losses. Similarly, if you arrange a mortgage on your home, you give the lender the right to sell your home if you fail to meet your obligation to make mortgage payments. Hypothecation may make it easier for you to secure a loan, but you do run the risk of losing the asset if for some reason you default on your obligation to repay according the terms of the agreement. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Most leases require landlord consent to a sublease, lease assignment or lease hypothecation or encumbrance or to an occupancy of the premises by third parties. Tempo Financial provides premium financing for life insurance policies, purchase of life insurance in the secondary market for investment and management, and arranges and structures bank financing and hypothecation of Life Settlement portfolios for the Company and third parties. transacting any corporate business which is not in the ordinary course including, but not limited to, any merger, sale or acquisition of the corporation and any sale, transfer, pledge, assignment, hypothecation or alienation of corporate assets or issuing any further stock, warrants, options or converting restricted stock to free trading stock until further order of the Court. |
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