hypothecation


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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 ?
[section] 240.8c-1 (2014) (regulating the hypothecation of
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.
(17.) A similar case has been made in relation to hypothecation. See Geoff Mulgan and Robin Murray, Reconnecting Taxation, Demos 1993.
Current liabilities in the MARKFED include creditors, sundry payables, short term loans or cash credit against hypothecation on stocks, and other liabilities including provisions, security deposit and unclaimed payable.
if the term of such lease has commenced, the lessee may retain its rights under such lease (including rights such as those relating to the amount and timing of payment of rent and other amounts payable by the lessee and any right of use, possession, quiet enjoyment, subletting, assignment, or hypothecation) that are in or appurtenant to the real property for the balance of the term of such lease and for any renewal or extension of such rights to the extent that such rights are enforceable under applicable nonbankruptcy law.").
The executive considered that, since there was no hypothecation between the new taxes and the aid granted to France Televisions, the taxes could be excluded from its examination of the grant.
IDBI Bank said, 'As security for the financial assistance granted by IDBI Bank, DCHL along with the other co-owners has created a charge by way of hypothecation of their trademarks Deccan Chronicle, Andhra Bhoomi, Financial Chronicle and Asian Age with goodwill.'
A prior approval by RGTIL must be taken from the oil regulator for creation of any lien, charge or hypothecation on the pipeline to secure finances for the project.
There is hypothecation that additional therapy would have been helpful.
There was really very little, comparatively, protest when Obama used the national exchequer to bail out General Motors and the Banks and Insurance companies which had threatened to go bankrupt when their huge bubble of housing loans - or the double hypothecation of small residential and business properties in their millions across the country -went bust.
The facility includes USD30.0m revolving timeshare receivables hypothecation facility, for a two-year revolving credit period, ending in September 2013.
In denying Airport's request to mortgage its leasehold estate and dissolve the corporation and assign its assets, including the ground lease, to its two shareholders, the appeals court found that hypothecation constitutes an assignment of less than the entire leasehold, which is prohibited by the ground lease without the consent of the landowner.