verb
- pledging property as security for a debt without transferring possession or title
Usage: finance; legal
Examples
- The bank is hypothecating the client’s securities as collateral for the loan.
- By hypothecating their home, they secured a lower interest rate.
- The investment firm was hypothecating customer assets without proper disclosure.
- Hypothecating inventory allows businesses to access working capital.
- The mortgage involves hypothecating the property to the lender.
- Regulations govern how brokers can engage in hypothecating client securities.