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Related to Hypothecate: Alienation Clause


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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
I propose that all oil and gas producing countries in Africa should make a common commitment to earmark, or hypothecate, a certain percentage of the revenues they earn from hydrocarbon exports in order to establish a common investment fund.
'And one of them is, if I'm going to hypothecate, I'll do it on success, rather than failure.'
My Lord will take this as but a figure: not only is the Duke no longer young, his body is so queerly misshapen that even to speak of "not stooping" seems absurdity: the creature is stooped, whether by cruel or impartial cause - say Time or the Tempter - I shall not venture to hypothecate. Cause or no cause, it would appear he marked some motive for his "reproof," a mortal chastisement in fact inflicted on his poor Duchess, put away (I take it so) for smiling - at whom?
This provision essentially permits the IRS to hypothecate and then allocate income to a taxpayer when none exists.
Prohibit pledging of the stock as collateral for a loan or other transaction (referred to as "hypothecate").