hypothecate

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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 ?
Importantly, the tax (the overtime) is hypothecated (i.e.
In fact, the present results provide robust evidence about public support for raising taxes when tax increases are modest and when they are clearly hypothecated in areas of public demand.
Two new taxes are proposed, and both - this is a real change - are to be hypothecated, i.e., spent on transport improvements.
For this reason the peculations of people like Drew were much closer to ground level, to the real stuff of productive activity, than, for example, the highly hypothecated transactions of today's junk bond market.
The receipts would not go into a general government budget, but instead would be hypothecated to a fund with independent trustees.
The property is hypothecated with the financial institution while you continue living in your house peacefully, by just paying your monthly installments on time.
I am not about the of the I note that Jeremy Hunt is proposing an increase in income tax which will, allegedly, be "hypothecated" (to use Hunt's jargon term) to the NHS.
A total of 66 per cent of people said they'd pay more tax for the NHS if they knew the money was hypothecated or ringfenced purely for treatment.
aren't they?" Mr Hammond rejected Mr Davies's argument, saying: "You and I know, that no Government has hypothecated revenues in that way, they allocate them across the economy."
Lord Heseltine noted in his influential Cities Renaissance paper in 2007 that local authorities were measured against no fewer than 1,200 central targets, faced heavily hypothecated funding mechanisms and moreover, in the case of regeneration, more than 50 different-funding streams.
"As we have made clear, the betting industry is sceptical about a further hypothecated tax, singling out bookmaking among the many industries where services are provided but often remain unclaimed."