Hypothecate (redirected from hypothecates)

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.

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hypothecate v. from Greek for "pledge," a generic term for using property to secure payment of a loan, which includes mortgages, pledges, and putting up collateral, but the borrower retains possession.

(See: secured transaction)