hypothecate

tr.v., -cat·ed, -cat·ing, -cates.
To pledge (property) as security or collateral for a debt without transfer of title or possession.

[Medieval Latin hypothēcāre, hypothēcāt-, from Latin hypothēca, pledge, deposit, from Greek hupothēkē, from hupotithenai, to give as a pledge, suppose. See hypothesis.]

hypothecation hy·poth'e·ca'tion n.
hypothecator hy·poth'e·ca'tor n.

To pledge something as security without turning over possession of it. Hypothecation creates a right in the Creditor to have the pledge sold to satisfy the claim out of the sale proceeds.

verb

To give or deposit as a pawn: mortgage, pawn¹, pledge. Slang hock. See transactions.

This entry contains information applicable to United States law only.

To pledge property as security or collateral for a debt. Generally, there is no physical transfer of the pledged property to the lender, nor is the lender given title to the property, though he or she has the right to sell the pledged property in the case of default.

Note: click on a word meaning below to see its connections and related words.

The verb has 2 meanings:

Meaning #1: pledge without delivery or title of possession

Meaning #2: to believe especially on uncertain or tentative grounds
  Synonyms: speculate, theorize, theorise, conjecture, hypothesize, hypothesise, suppose

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