Definition, Meaning & Synonyms
hypothecate
verb
/haɪˈpɒθɪkeɪt/
Definition
To pledge or offer something as security for a loan without transferring ownership.
Examples
- The entrepreneur decided to hypothecate his property to secure financing for his startup.
- In the event of default, the bank can seize the hypothecated asset.
- Many homeowners hypothecate their houses when taking out a mortgage.
Meaning
Hypothecating involves putting up an asset as collateral for a loan while retaining ownership of the asset.
Synonyms
- pledge
- mortgage
- secure
- commit
