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hypothecate
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hypothecate
as in:  hypothecate assets


Was he not hypothecating more of his future earnings for this temporary grandeur than was really wise?
Theodore Dreiser  --  An American Tragedy
  to pledge real or personal property as security for a loan or other obligation without surrendering possession of the property

or:

to pledge that money will be used for a particular purpose; e.g., a dedicated tax such as a gasoline tax that might be hypothecated for road improvement
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hypothecation hypothecate hypothecated
Notes:
When property is hypothecated as collateral, the borrower retains the rights of control and possession of the property, but the lender secures an underlying equitable right in the pledged property and can take ownership if the debt is not paid.
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Samples:
  • Was he not hypothecating more of his future earnings for this temporary grandeur than was really wise?
    Theodore Dreiser  --  An American Tragedy
  • At the same time he had been thinking all this while that with his own resources hypothecated as they were, he could do nothing.
    Theodore Dreiser  --  An American Tragedy
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Associated words [difficulty]:   hypothecate , capital [1] , pro rata [9] , working capital [9]
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Most commonly used in these subjects:   Business, Personal Finance, Law
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