Hypothecation

Definition:

  • (n.) The act or contract by which property is hypothecated; a right which a creditor has in or to the property of his debtor, in virtue of which he may cause it to be sold and the price appropriated in payment of his debt. This is a right in the thing, or jus in re.
  • (n.) A contract whereby, in consideration of money advanced for the necessities of the ship, the vessel, freight, or cargo is made liable for its repayment, provided the ship arrives in safety. It is usually effected by a bottomry bond. See Bottomry.

Compare hypothecation with other words:

hypothecate vs. hypothecation

hypothecation vs. loan

hypothecation vs. property

hypothecation vs. pledge

factoring vs. hypothecation

collateral vs. hypothecation

hypothecation vs. mortgage