Definition of hypothecate in English:

hypothecate

Line breaks: hy¦pothe|cate
Pronunciation: /hʌɪˈpɒθɪkeɪt
 
/

verb

[with object]
Pledge (money) by law to a specific purpose: she arranged to hypothecate her half of the equity to pay for the charter (as adjective hypothecated) a hypothecated tax
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.

Origin

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

Derivatives

hypothecation

Pronunciation: /-ˈkeɪʃ(ə)n/
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.

Definition of hypothecate in:

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