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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 ?
As a result under the emerging taxing arrangements it is likely that increases in land tax revenue will further expand if hypothecated taxes are imposed by local government and collected on behalf of the States.
Although politicians dislike hypothecated taxes because they reduce flexibility in allocating funds, some citizens might welcome a new freedom to 'shop around' with an insurance policy that looks to them like a personal health budget.
We should fund modifications to teacher training and CPD in the same way school capital projects are funded, through the use of hypothecated grants to schools and colleges, funded by a modest redistribution of resources away from capital budgets for buildings.
The brand Kingfisher has not been hypothecated or pledged by the company to any lender to secure its loans."
There is, however, disagreement among experts as to whether taxes should be hypothecated which is to say that a particular tax or a proportion of revenue from particular or general taxation should be allocated to a particular head of expenditure.
In my opinion, the report should be praised for a number of factors such as the call for the total cancellation of the debt of Africa's least industrialized countries; a doubling of development aid to $100bn by 2015; calls for special global tax hypothecated for development programmes; an improvement of governance including tackling corruption in Africa and within OECD multinationals, and a recommitment to meet Millennium Development Goals.
More widely, it is surely a small step from regional parliaments to regional welfare administrations and from a local income tax to replace the council tax to an hypothecated local income tax to fund local welfare initiatives?
Support for spending among the middle class and conservative electorates may have increased because the spending option in AuSSA is hypothecated, including only two 'safe' and popular spending options and not left as unspecified spending--perhaps unattractive to conservative voters.
It should be addressed through the introduction of a hypothecated Green Levy (comparable to Medicare, the levy used to fund the national health scheme) to fund urgent transition and repair programs, through environmental tax reform, and the elimination of subsidies to environmentally destructive activities.
Hypothecated taxes--taxes earmarked for a specific purpose such as health care spending--are attractive because polling shows the public is more willing to pay more when they know exactly where the money is going.
Those properties belong to the public domain and cannot be hypothecated.