hypothecation Definition
- 1the act of pledging property as security for a loan without giving up possession of it
- 2the state of being pledged in this way
Using hypothecation: Examples
Take a moment to familiarize yourself with how "hypothecation" can be used in various situations through the following examples!
Example
The company used its assets as hypothecation to secure the loan.
Example
Hypothecation is a common practice in the banking industry.
Example
The hypothecation of the car allowed him to get a loan from the bank.
hypothecation Synonyms and Antonyms
Synonyms for hypothecation
Phrases with hypothecation
a type of hypothecation where the borrower pledges inventory or other movable assets as collateral
Example
The company used floating hypothecation to secure the loan.
a type of hypothecation where the borrower pledges fixed assets such as land or buildings as collateral
Example
The bank required fixed hypothecation of the property before approving the loan.
equitable hypothecation
a type of hypothecation where the borrower pledges assets that are not owned by them but are under their control, such as goods in transit
Example
The bank agreed to equitable hypothecation of the goods in transit.
Origins of hypothecation
from Late Latin 'hypothecatio', from Greek 'hupothēkē', meaning 'pledge'
Summary: hypothecation in Brief
Hypothecation [hahy-puh-the-kei-shuhn] is the act of pledging property as security for a loan without giving up possession of it. It is a common practice in the banking industry and can be done with movable or fixed assets. Examples include 'The company used its assets as hypothecation to secure the loan.' and 'The hypothecation of the car allowed him to get a loan from the bank.'
