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Webster 1913 Edition

Hypothecation

Hy-pothˊe-ca′tion

,
Noun.
[LL.
hypothecatio
.]
1.
(Civ. Law)
The act or contract by which property is hypothecated; a right which a creditor has in or to the property of his debtor, in virtue of which he may cause it to be sold and the price appropriated in payment of his debt. This is a right in the thing, or jus in re.
Pothier. B. R. Curtis.
There are but few cases, if any, in our law, where an
hypothecation
, in the strict sense of the Roman law, exists; that is a pledge without possession by the pledgee.
Story.
☞ In the modern civil law, this contract has no application to movable property, not even to ships, to which and their cargoes it is most frequently applied in England and America. See
Hypothecate
.
B. R. Curtis. Domat.
2.
(Law of Shipping)
A contract whereby, in consideration of money advanced for the necessities of the ship, the vessel, freight, or cargo is made liable for its repayment, provided the ship arrives in safety. It is usually effected by a bottomry bond. See
Bottomry
.
☞ This term is often applied to mortgages of ships.

Webster 1828 Edition

Hypothecation

HYPOTHECA'TION

,
Noun.
The act of pledging, as a ship or goods, for the repayment of money borrowed to carry on a voyage; otherwise called bottomry.

Definition 2024

hypothecation

hypothecation

English

Noun

hypothecation ‎(plural hypothecations)

  1. the use of property, or an existing mortgage, as security for a loan, etc.
Derived terms
Translations

Etymology 2

Blend of hypothetical +‎ dedication

Noun

hypothecation ‎(plural hypothecations)

  1. (Britain) A tax levied for a specific expenditure
    • 1984, John R. Butler & Michael S. B. Vaile, Health and Health Services: An Introduction to Health Care in Britain, ISBN 0710099029, page 68:
      It is, however, precisely here that the weakness of hypothecation lies, for governments are not likely readily to surrender control over the disposition of taxes they impose.
    • 2006, Dominic Maxwell, “Towards a citizen's inheritance”, in The Citizen's Stake, ISBN 1861346999, page 49:
      So, strict hypothecation is only advisable when the tax pays entirely and only for that spending programme […]
    • 2006, Julian Le Grand, Motivation, Agency, and Public Policy, ISBN 0199298912, page 155:
      Either way, effectively the government is simply using the hypothecated tax as part of general revenue, and the hypothecation is a sham.

Etymology

hypothecate +‎ -ion. From Latin hypothecatio, in turn from hypotheco ‎(“I pledge as collateral”).

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