Hypothecation

Definitions

  • Webster's Revised Unabridged Dictionary
    • Hypothecation (Law of Shipping) 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.
    • Hypothecation (Civ. Law) 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. "There are but few cases, if any, in our law, where an hypothecation , in the strict sense of the Roman law, exists; that is a pledge without possession by the pledgee."
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Century Dictionary and Cyclopedia
    • n hypothecation In Roman law, mortgage; a contract lien given by a debtor to his creditor as security, without giving him possession of the property. It usually if not always related to real property, while security upon personal property was given by possession, and termed pignus, or pledge.
    • n hypothecation In French law (hypothèque), a lien on immovable property for security of a debt, without giving the creditor possession. Legal hypothecation is that which is implied by law; judicial hypothecation, that which is established by a judgment of a court, affecting particular real property or all the real property of a particular debtor; and conventional hypothecation, that which is created by contract before a magistrate or notary. Immobilized shares in the Bank of France are deemed immovable property for the purpose of allowing hypothecation. Vessels may be the subject of conventional hypothecation.
    • n hypothecation In American financial usage, a pledge; alien on personal property, particularly on negotiable securities, given by a debtor by transferring possession, with evidences of title, to his creditor. In this use the term always implies creation by contract, and that the securities hypothecated are put or supposed to be put beyond the control of the debtor until payment of his debt.
    • n hypothecation In modern commercial usage, the mortgage of a vessel or her cargo, as in the phrase hypothecation bond, a bottomry bond or respondentia bond. See bottomry and respondentia.
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Etymology

Webster's Revised Unabridged Dictionary
LL. hypothecatio,

Usage

In literature:

If the hale hypothec were to fa', I think, laddie, I would dee!
"Weir of Hermiston an unfinished romance" by Robert Louis Stevenson
And at last, in the village of Ussel, saddle and all, the whole hypothec turned round and grovelled in the dust below the donkey's belly.
"Travels with a Donkey in the Cevennes" by Robert Louis Stevenson
Probably he hypothecated his wages, certainly he had his five rupees.
"The Land of Footprints" by Stewart Edward White
Three million and a half to be hypothecated for eleven hundred thousand francs these women will force him to squander!
"The Marriage Contract" by Honore de Balzac
A Philadelphia magnate had hypothecated them for the use of the ready cash.
"The Financier" by Theodore Dreiser
If any one of us wants money, Roguin will get it for him by hypothecating his share.
"Rise and Fall of Cesar Birotteau" by Honore de Balzac
Associated Words: barratry, hypothecate, hypothecation.
"Putnam's Word Book" by Louis A. Flemming
These bonds they dispose of or hypothecate to obtain loans on.
"Disputed Handwriting" by Jerome B. Lavay
He borrowed of the most unscrupulous bourgeois, hypothecated his chateaux, alienated his lands.
"Là-bas" by J. K. Huysmans
Hypothecation, of crop, regulated, 49.
"The Oldest Code of Laws in the World The code of laws promulgated by Hammurabi, King of Babylon B.C. 2285-2242" by Hammurabi, King of Babylon
He is also in favour of the abolition of the laws of entail and hypothec.
"Western Worthies" by J. Stephen Jeans
The pension of the House is said to be hypothecated for five years.
"The Yotsuya Kwaidan or O'Iwa Inari" by James S. De Benneville
He'd hypothecated the canary.
"Shorty McCabe on the Job" by Sewell Ford
No doubt both of these would have been hypothecated if it were possible.
"Little Journeys to the Homes of the Great, Volume 11 (of 14)" by Elbert Hubbard
For instance, let's hypothecate.
"The Big Fix" by George Oliver Smith
What a pity my own acres are already hypothecated!
"The Flag of Distress" by Mayne Reid
All his outstanding investments had been hypothecated, with shrewd advantage.
"The Ghost Breaker" by Charles Goddard
Mix to hypothecate his shirt, and bet the proceeds on the fourth race, this coming Saturday.
"Rope" by Holworthy Hall
She could hypothecate her income; sell her jewels.
"An Oregon Girl" by Alfred Ernest Rice
Power to sell and hypothecate.
"The Seaman's Friend" by Richard Henry Dana
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In science:

The works and look at CVA and DVA gap risk under several collateralization strategies, with or without re-hypothecation, as a function of the margining frequency, with wrong-way risk and with possible instantaneous contagion.
Illustrating a problem in the self-financing condition in two 2010-2011 papers on funding, collateral and discounting
For a more comprehensive framework that includes explicit default modeling, collateral modeling, re-hypothecation and debit valuation adjustments we refer the reader elsewhere, for example or .
Illustrating a problem in the self-financing condition in two 2010-2011 papers on funding, collateral and discounting
Arbitrage-free bilateral counterparty risk valuation under collateralization and re-hypothecation with application to CDS.
Illustrating a problem in the self-financing condition in two 2010-2011 papers on funding, collateral and discounting
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