hypothecation

1 9.9

Property like a car or house given for a loan while the owner keeps it

noun
/haɪˌpɑːθɪˈkeɪʃən/

Specialized

: hipoteca

The bank agreed to the hypothecation of the commercial property as collateral for the business loan.

Examples

In a typical hypothecation, the borrower maintains ownership of the property while the lender secures the loan against it.
There are many brokers running around outraged by this chain of events, but when they looked at the fine print in their contracts with MF Global, they found they had consented to such hypothecation.

Blog text (5)
The second point is about "hypothecation."

Academic text (2001)
That smells like 'hypothecation' in the manner of MF Global.

Blog text (6)
During the meeting, they explained how hypothecation allows borrowers to keep their assets while securing financing.

Surface Forms

hypothecation singular

hypothecations plural

Morphology

hypothecation = hypothecate (semi-transparent) = hypothec + ation

The noun is a regular nominalization of the verb 'hypothecate' using '-ation', so the formation is morphologically regular and predictable.

Etymology

Hypothecation comes from Greek parts hypo- 'under' and theke 'a placing'. It pictures putting property 'under' a loan as a 'deposit' or 'pledge' while the owner keeps it, which is what hypothecation means today.