Definition, Meaning & Synonyms
hypothecary
Adjective
/haɪˈpɒθɪˌkɛəri/
Definition
Relating to a loan secured by the collateral of an asset, where the lender has a right to the collateral if the borrower defaults.
Examples
- The hypothecary loan allowed him to leverage his investments without giving up ownership of his assets.
- In a hypothecary agreement, the borrower can retain the use of their property while receiving funds from the lender.
Meaning
The term signifies a financial arrangement where property is pledged as security for a loan, without losing possession of the property.
Synonyms
- Secured
- Pledged
- Collateralized
