Hypothecation

Hypothecation
Hypothecation Hy*poth`e*ca"tion, n. [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. [1913 Webster]

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. [1913 Webster]

Note: 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. [1913 Webster]

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}. [1913 Webster]

Note: This term is often applied to mortgages of ships. [1913 Webster]


The Collaborative International Dictionary of English. 2000.

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Look at other dictionaries:

  • hypothecation — I noun collateral, contract of mortgage, contract of pledge, creation of a lien, guarantee, lien, mortgage, pledge, security associated concepts: hypothecated property II index charge (lien), cloud (incum …   Law dictionary

  • Hypothecation — See also hypothec. The original use of the word hypothecation was for a pledge of property as collateral for a debt without transfer of possession to the party making the loan. The arrangement is common with modern mortgages the borrower retains… …   Wikipedia

  • hypothecation — A Roman law name for a pawn or pledge wherein the feigned pledge remained in the possession of the pledgor. 41 Am J1st Pldg & Col § 2. A contract whereby, without change of possession, specific property is designated as security for the payment… …   Ballentine's law dictionary

  • hypothecation — (1) An archaic term for pledging that did not involve either possession or title transfer. (2) Any pledge of an asset as collateral for a debt. (An uncommon but correct usage.) (3) The pledge of marketable securities or deposits to secure a loan… …   Financial and business terms

  • hypothecation — 1) An authority given to a banker, usually as a letter of hypothecation, to enable the bank to sell goods that have been pledged to them as security for a loan. It applies when the bank is unable to obtain the goods themselves. The goods have… …   Accounting dictionary

  • hypothecation — 1) An authority given to a banker, usually as a letter of hypothecation, to enable the bank to sell goods that have been pledged (see pledge) to them as security for a loan. It applies when the bank is unable to obtain the goods themselves. The… …   Big dictionary of business and management

  • hypothecation — hə̇ˌpäthəˈkāshən, (ˌ)hīˌ noun ( s) Etymology: Medieval Latin hypothecation , hypothecatio, from hypothecatus (past participle) + Latin ion , io ion 1. Roman, civil, & maritime law : the act or contract by which property (as real property) is… …   Useful english dictionary

  • hypothecation certificate — noun : a certificate attached to a bill of exchange empowering the holder to dispose of merchandise if payment or acceptance is refused called also letter of hypothecation …   Useful english dictionary

  • hypothecation — noun see hypothecate I …   New Collegiate Dictionary

  • hypothecation — See hypothecate. * * * …   Universalium

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