hypothecation

English

Etymology

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

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hypothecation

Wikipedia

Noun

hypothecation (countable and uncountable, plural hypothecations)

1. The use of property, or an existing mortgage, as security for a loan, etc.

   Hyponym: rehypothecation

   • 1856, Samuel Klinefelter Hoshour, Letters to Squire Pedant, in the East, page 28:

     After the deperdition of Indagator, having an appetency still further to pervstigate the frithy occident; being still an agamist, and not wishing to be any longer a pedaneous viator, nor to be solivagant, I brought about the emption of a yaud, partly by numismatic mutuation, and partly by a hypothecation of my fusee and argental horologe.

2. (British) 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, 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, 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, page 155:

     Either way, effectively the government is simply using the hypothecated tax as part of general revenue, and the hypothecation is a sham.

   • 2025 October 1, Peter Plisner, “Closing in on Camp Hill reopening”, in RAIL, number 1045, page 46:

     Local authorities have linked the scheme to broader climate ambitions. Indeed, some of the funding for the stations has come from hypothecation of monies received through Birmingham's Clean Air Zone charges.

Derived terms

• rehypothecation

Related terms

• hypothecate (verb)

Translations

the use of property as security for a loan

Finnish: panttaus, vakuusjärjestely, takaus (fi) German: Verpfändung f Greek: υποθήκευση (el) f (ypothíkefsi) Icelandic: veðsetning f Korean: 담보 (ko) (dambo) Ukrainian: гіпотезу (hipotezu)

See also

• in hock
• secured debt
• secured loan
• securitization