Definition of hypothecate in English:

hypothecate

Syllabification: hy·poth·e·cate
Pronunciation: /həˈpäTHiˌkāt, hī-
 
/

verb

[with object]
  • Pledge (money) by law to a specific purpose.
    More example sentences
    • The Inter-State Commission was equivocal about hypothecation, but recognised hypothecated payments as contributions toward the cost of road use.
    • Many French taxes and national insurance charges are hypothecated to particular layers of government, or spending funds.
    • When a customer hypothecates goods to his bank, he purports to create a security, which constitutes neither a legal mortgage nor a pledge.

Derivatives

hypothecation

Pronunciation: /həˌpäTHiˈkāSHən, hī-/
noun
More example sentences
  • The reason for this is that hypothecation reduces financial accountability in the absence of competitive market disciplines.
  • If hypothecation is extended and the Treasury manages a series of accounts tying revenue to specific spending, they will lose some of this clout.
  • Central agencies opposed hypothecation in the absence of financial market disciplines.

Origin

early 17th century: from medieval Latin hypothecat- 'given as a pledge', from the verb hypothecare, based on Greek hupothēkē.

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