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 ?
Naked short selling is the illegal act of short selling a stock when no affirmative determination has been made to locate shares of the stock to hypothecate in connection with the short sale.
ADZs hypothecate the uplift in value and tax revenue over 30 years If you regenerate an area.
I don't intend to hypothecate the money to health boards for particular purposes because there are challenges across the whole system, whether it's elective planned care, primary care or emergency departments but the general point, that the extra money will allow local health boards to come through the winter in a better way than they would have without it is certainly well made.
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?