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 ?
Even within the NHS, there is no guarantee that the department that has been most underfunded - mental health (where the underfunding continues to cause major pressures elsewhere) - would be the beneficiary of a hypothecated NHS tax.
This is because the tax increase proposed is both small and hypothecated in favour of public provision that the public wants protected-and even expanded.
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.
Mr Hammond rejected Mr Davies' argument, saying: "You and I know, Mr Davies, that no Government has hypothecated revenues in that way, they allocate them across the economy.
After all, it's a hypothecated tax, which even the banking code covers voluntarily.
For this to work, money must be hypothecated to defined infrastructure projects which will have a positive impact upon the business community.
I have made it clear that money gained from congestion charging should be hypothecated to improve public transport.
As we've said before a hypothecated tax, earmarked for health, is the honest way of funding the NHS.
All of the shares, warrants and any shares issued upon exercise of the warrants pursuant to the private placement and finder's fee may not be sold, transferred, hypothecated or otherwise traded on or through the Canadian Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until May 5, 2002 without the prior written approval of the Canadian Venture Exchange and as permitted by applicable securities legislation.
I asked whether just half of one per cent, when VAT returned to its normal rate, might help plug the gap specifically on social care (a hypothetical hypothecated tax of nearly pounds 2.
In his submission to the committee, which he will address in person on Thursday , Prof Pennington said: "It seems unlikely that any significant sums of new money to pay for work to implement my recommendations - hypothecated, ring-fenced or not - will be allocated to local authorities.