hypothecate


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Related to hypothecate: Alienation Clause

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 ?
The manager is told the interest rate will be an eighth of a point lower if he allows the bank to "hypothecate" or sell the collateral.
However, in any case, the SIDB will not be entitled to sell, sublet, destroy, mortgage, pledge hypothecate or handover the furniture and equipment or any other assets of the centre.
"ADZs hypothecate the uplift in value and tax revenue over 30 years If you regenerate an area.
Mr Blizzard said: ``My proposal to ring fence - hypothecate - the fixed penalty fines has now been piloted very successfully by a number of local authorities in England, with places like Newcastle reporting hugely significant results.''
Rather than sacking people have they thought of four-day weeks, rather than cutting libraries why not raise council tax and hypothecate that rise, have they ever read Keynes?