What Is Hypothecation? Definition, Examples, and Risks Hypothecation is the arrangement that makes most secured lending possible: a borrower pledges an asset as collateral for a loan while keeping possession and use of that asset Your home mortgage, your car loan, and your brokerage margin account all rely on it
hypothecate | Wex | US Law | LII Legal Information Institute Hypothecate means to pledge something as security for a loan, without the actual delivery of the item pledged For example, a car may be collateral for a car loan, although possession remains with the borrower
What Does Hypothecation Mean? - Experian Hypothecation occurs when you use collateral to secure a loan while maintaining possession of it In some cases, the asset you’re purchasing acts as collateral; in others, you pledge a different asset to secure the loan
Hypothecate - definition of hypothecate by The Free Dictionary (Law) (tr) law to pledge (personal property or a ship) as security for a debt without transferring possession or title 2 (Economics) to allocate the revenue raised by a tax for a specified purpose See also bottomry
What Does Hypothecation Mean In Lending? | Bankrate Hypothecation refers to the process of using something as collateral for a loan It’s the way the lender protects itself if the borrower doesn’t repay the money or violates the loan agreement
Hypothecate Definition - What Does Hypothecate Mean? - Legal Explanations Hypothecate is a term derived from the Greek word "hypothēkē," which means "pledge " In law, hypothecate is defined as the act of offering an asset or property as collateral to secure a loan without relinquishing its ownership