hypothecation
|hy-po-the-ca-tion|
/ˌhaɪpəθəˈkeɪʃən/
pledging assets as security
Etymology
'hypothecation' originates from Late Latin, specifically the word 'hypothecatio', ultimately from Greek 'hypothēkē', where 'hypo-' meant 'under' and 'tithenai' (or the root 'thēkē') related to 'placing' or 'a deposit'.
'hypothecation' changed from the Late Latin 'hypothecatio' and Old French/Medieval Latin forms (related to 'hypotheca'/'hypothèque') and eventually entered modern English as 'hypothecation' in legal and financial usage.
Initially it meant 'a deposit or pledge' in classical usage, and over time it evolved into the technical modern meaning of 'the act or arrangement of pledging assets as security (often without transfer of possession)'.
Meanings by Part of Speech
Noun 1
the act or practice of pledging an asset as security for a debt without delivering possession or title; the creation of a security interest while the debtor retains possession.
The bank required the hypothecation of the company's inventory as collateral for the loan.
Synonyms
Antonyms
Last updated: 2025/10/19 14:58