noun
- A person who pledges property as security for a loan or debt without transferring ownership or possession.
Usage: legal/financial term; primarily used in maritime and commercial law
Examples
- The hypothecator retained ownership of the ship while using it as collateral for the loan.
- In maritime commerce, a hypothecator can pledge a vessel to secure financing for a voyage.
- The bank required the hypothecator to maintain insurance on the pledged property.
- As a hypothecator, she kept full control of the equipment despite the lien against it.
- The contract specified the hypothecator's obligations in case of default.