hypothecation


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Related to hypothecation: hypothecation agreement

hypothecation

noun collateral, contract of morttage, contract of pledge, creation of a lien, guarantee, lien, mortgage, pledge, security
Associated concepts: hypothecated property
See also: charge, cloud, contract, guaranty, incumbrance, lien, specialty

hypothecation

1 a method of creating a HYPOTHEC.
2 in politics, rather than law, the assignation of an element of taxation to particular beneficiaries rather than the general coffers of the Treasury.

HYPOTHECATION, civil law. This term is used principally in the civil law; it is defined to be a right which a creditor has over a thing belonging to another, and which consists in the power to cause it to be sold, in order to be paid his claim out of the proceeds.
     2. There are two species of hypothecation, one called pledge, pignus, and, the other properly denominated hypothecation. Pledge is that species, of hypothecation which is contracted by the delivery of the debtor to the creditor, of the thing hypothecated. Hypothecation, properly so called, is that which is contracted without delivery of the thing hypothecated. 2 Bell's Com. 25, 5th ed.
     3. Hypothecation is further divided into general and special when the debtor hypothecates to his creditor all his estate and property, which he has, or may have, the hypothecation is general; when the hypothecation is confined to a particular estate, it is special.
     4. Hypothecations are also distinguished into conventional, legal, and tacit. 1. Conventional hypothecations are those which arise by the agreement of the parties. Dig. 20, 1, 5.
     5.-2. Legal hypothecation is that which has not been agreed upon by any contract, express or implied; such as arises from the effect of judgments and executions.
     6.-3. A tacit, which is also a legal hypothecation, is that which the law gives in certain cases, without the consent of the parties, to secure the creditor; such as, 1st. The lien which the public treasury has over the property of public debtors. Code, 8, 15, 1. 2d. The landlord has a lien on the goods in the house leased, for the payment of his rent. Dig. 20, 2, 2; Code, 8, 15, 7, 3d. The builder has a lien, for his bill, on the house he has built. Dig. 20, 1. 4th, The pupil has a lien on the property of the guardian for the balance of his account. Dig. 46, 6, 22; Code, 6, 37, 20. 5th. There is hypothecation of the goods of a testator for the security of a legacy he has given. Code, 6, 43, 1.
     7. In the common law, cases of hypothecation, in the strict sense of the civil law, that is, of a pledge of a chattel, without possession by the pledgee, are scarcely to be found; cases of bottomry bonds and claims for seamen's wages, against ships are the nearest approach to it; but these are liens and privileges rather than hypothecations. Story, Bailm. Sec. 288. It seems that chattels not in existence, though they cannot be pledged, can be hypothecated, so that the lien will attach, as soon as the chattel has been produced. 14 Pick. R. 497.
     Vide, generally, Poth. de l'Hypoth‚que; Poth. Mar. Contr. translated by Cushing, note. 26, p. 145; Commercial Code of France, translated by Rodman, note 52, p. 351; Merl. R‚pertoire, mot Hypoth‚que, where the subject is fully considered; 2 Bro. Civ. Law, 195; Ayl. Pand. 524; 1 Law Tracts, 224; Dane's Ab. h.t.; Abbott on Ship. Index, h.t.; 13 Ves. 599; Bac. Ab. Merchant, &c. G; Civil Code of Louis. tit. 22, where this sort of security bears the name of mortgage. (q.v.)

References in periodicals archive ?
That the Bank consequent to the issuance of consolidated insurance policy No: 2010 having code No: 52 by your company namely M/S ABC Insurance Co for pledge stock of rice paddy and hypothecation stock of rice/paddy worth Rs.
The answer to that, of course, is a set of entirely different questions about hypothecation and the strange rule-bound thing that is the UK economy.
Some of the merits and demerits of hypothecation will be illustrated in the course of this article.
In launching his campaign, Brennan singled out child endowment, the abolition of sales and payroll tax, government home loan guarantees, and the hypothecation of fuel taxes for roads.
While tax cuts in any form are largely welcome, we need to tell Government that a lack of hypothecation in transport and environmental taxes is not acceptable.
Because an equitable lien is a species of hypothecation, the lienor only acquires a right to compel a sale of the property after the lienee defaults.
While such hypothecation (linking of public revenue to specific tasks) is normally not a principle that should be supported, in this case it has major benefits, including increasing public support for the scheme and enhancing toleration of its economic impacts.
I was particularly pleased to hear the mayor of New York say he intended to bring in an environment charter that included congestion charging and hypothecation of money to the public transport system.
Prohibit hypothecation (pledging of the interest as collateral for a loan).
8) It is a hybrid form of transaction that probably falls between sale and hypothecation, since the property that served as security could be bought back by the debtor.
Peter's cherished goal of total hypothecation of betting turnover will not only cause prize-money to drop but, more importantly, it will cause racing's income to drop, as some courses will find themselves in a downward spiral with fewer runners driving less turnover and fewer customers, causing a very detrimental shrinkage of jump racing.
Weber helps her executive clients with all aspects of their financial services needs, such as hypothecation lending on restricted stock, (affording executive officers and affiliates of publicly traded companies as well as other holders of restricted or concentrated stock positions liquidity based on the value of their restricted, control or concentrated stock positions); corporate relocation home mortgages though Citimortgage; 401(k) rollovers, diversification strategies for concentrated equity positions; professional money management (assisting clients with investment-manager evaluation, selection and regular performance monitoring), as well as retirement and estate planning.