What's the difference between hypothecation and loan?

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.

Example Sentences:

  • (1) Mere hypothecation, scoff politicians, rejecting the idea again in parliament yesterday.
  • (2) Full-blooded hypothecation would in theory dodge some of these weaknesses.
  • (3) We have found that nocodazole reversibly inhibits nuclear migration and can be used to induce karyokinesis before the completion of nuclear migration, resulting in spindles that are displaced toward the hypothecal end of the cell.
  • (4) In that package you put out this week for instance, the spending cuts to benefits are hypothecated towards childcare payments.
  • (5) "Funded by a hypothecated tax, the BBC feels empowered to offer something for everyone, even in areas well served by the market.
  • (6) In order to be able to claim it would be revenue-neutral – a kind of reverse hypothecation – a 0.3% cut in employers' national insurance contributions was made at the same time.
  • (7) That’s the reality, however passionately we might think this is the right solution, but certainly when Labour was in government and we did the penny on NI [national insurance] for the NHS, it was a semi-hypothecation to say it’s going to go on this specifically.
  • (8) The shadow treasurer, Chris Bowen, said the budget leak was a “desperate attempt to cover for the fact the Government will be adopting, in full, Labor’s policy on tobacco excise.” “Labor’s tobacco excise policy was fully and independently costed by the Parliamentary Budget Office.” “Labor has never directly hypothecated the revenue from tobacco excise for schools spending.
  • (9) The government has also hypothecated the savings from the cuts to family tax benefits as a way to “pay” for a $3.5bn childcare shake-up that was the centrepiece of this year’s budget.
  • (10) NI itself started as a hypothecated tax or "contribution" to fund social security including pensions (though not the NHS).
  • (11) There is a whisper that the government is considering a reprise of its previous increase of National Insurance rates, hypothecated for the NHS.
  • (12) The last time the debate about hypothecation captured attention was back in the 1990s, when Labour was struggling to assert its economic competence.
  • (13) Hypothecated taxes, as economists call them (deriving from the Greek hypotithenai, meaning "to give as pledge"), are usually opposed by finance ministries because they reduce central control.
  • (14) He refused to confirm that the £1bn funding will come from a squeeze on tax credits, arguing that no tax raising measure is hypothecated in this exact way.
  • (15) This would require some general taxation but could be gradually built up with more money from hypothecated taxes associated with health and consumption of care.
  • (16) British taxes are not hypothecated and he might as well say mansion tax is to pay for Trident submarines, but he has “promised” it to the NHS.
  • (17) The Treasury would hate this hypothecated tax, but it might just focus minds enough to kickstart a rational debate over the cost, funding and provision of modern healthcare.
  • (18) This would be seen as a particularly radical step because it would be a form of hypothecation – allowing a stream of revenue to be directed at a particular project.
  • (19) But hypothecation with a purpose, looking after the country's long-term interests, building up a reserve that can, in line with strict rules ( Norway's cap on annual spending of its vast fund is just 4% a year ) provide an insurance for everyone in an uncertain future.
  • (20) First, tumors should grow better and be less immunogenic in certain F1 hybrids than in their syngeneic parents, owing to the hypothecated cross-reactivity of the tumor-specific transplantation antigens with F1 antigens.

Loan


Definition:

  • (n.) A loanin.
  • (n.) The act of lending; a lending; permission to use; as, the loan of a book, money, services.
  • (n.) That which one lends or borrows, esp. a sum of money lent at interest; as, he repaid the loan.
  • (n. t.) To lend; -- sometimes with out.

Example Sentences:

  • (1) At the heart of the payday loan profit bonanza is the "continuous payment authority" (CPA) agreement, which allows lenders to access customer bank accounts to retrieve funds.
  • (2) Madrid now hopes that a growing clamour for future rescues of Europe's banks to be done directly, without money going via governments, may still allow it to avoid accepting loans that would add to an already fast-growing national debt.
  • (3) 2010 2 May : In a move that signals the start of the eurozone crisis, Greece is bailed out for the first time , after eurozone finance ministers agree to grant the country rescue loans worth €110bn (£84bn).
  • (4) Dominic Fifield Facebook Twitter Pinterest Ravel Morrison, who has been on loan at QPR, may be set for a return to Loftus Road.
  • (5) The club then brought in Darren Randolph, Dean Brill, Scott Flinders, Roman Larrieu, and Simon Royce on loan at various times."
  • (6) However, civil society groups have raised concerns about the ethics of providing ‘climate loans’ which increase the country’s debt burden.
  • (7) I had loan sharks turning up at the training ground when I was at Ipswich [2011-13].
  • (8) I have to do my best.” The Leeds sporting director Nicola Salerno told the news conference that it was unlikely there would be new permanent signings in the January transfer window, but that there would be the possibility for loan deals.
  • (9) Most (86 percent) had educational debt (mean = $20,500), and more than half of those with debt were making loan payments.
  • (10) Yet private student loans – given out by banks and financial institutions to the students who can’t get a federal loan – don’t get as much attention as the federal system.
  • (11) Nevertheless we know that there will remain a large number of borrowers with payday loans who are struggling to cope with their debts, and it is essential that these customers are signposted to free debt advice.
  • (12) "Getting a 95% loan to value mortgage lets you speculate on the expected house price increases a lot more than a 75% mortgage," he said.
  • (13) Norwich Ownership Delia Smith and her husband Michael Wynn Jones own 53.1% of the club’s shares; deputy chairman Michael Foulger owns approximately 16% Gate receipts £12m Broadcasting and media £70m Catering £4m Commercial & other income £12m Net debt Not stated; £2.7m bank overdraft, no directors’ loans.
  • (14) Also remember that each time you apply for a loan your credit record is checked, which will leave a footprint of the search.
  • (15) The availability of loans for small businesses, however, only increased slightly in the fourth quarter of last year and banks noted a decline in demand from these quarters.
  • (16) It acts as a one-stop shop bringing together credit unions and other organisations, such as Five Lamps , a charity providing loans, and white-goods providers willing to sell products with low-interest repayments.
  • (17) Any loan between Tata and the government would be on commercial terms, but it could be a key in helping turn around the loss-making business.
  • (18) The CML said the value of lending for house purchases was up by 8% year on year in May, at £9.4bn, while the number of loans grew by 5% to 53,800.
  • (19) As part of the plan, the treasury and the Federal Deposit Insurance Corporation will guarantee against the "possibility of unusually large losses" on up to $306bn of risky loans and securities backed by commercial and residential mortgages.
  • (20) Jeremain Lens, signed from Dynamo Kyiv, was fortunate to escape dismissal for a second yellow card, while Yann M’Vila, on loan from Rubin Kazan, followed his headbutt in the reserves by raising arms to Graham Dorrans during an unpunished, but unwise, bout of push ’n’ shove.

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