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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.


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)

See: bond, deposit, guarantee, pawn, pledge, promise, vow
References in periodicals archive ?
Mr Blizzard said: ``My proposal to ring fence - hypothecate - the fixed penalty fines has now been piloted very successfully by a number of local authorities in England, with places like Newcastle reporting hugely significant results.
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.
By entering into repo and securities lending activities, a holder derives a return merely by possession and the right to hypothecate the security.
This provision essentially permits the IRS to hypothecate and then allocate income to a taxpayer when none exists.