Hypothecation

hypothecate + -ion. From Latin hypothecatio, in turn from hypotheco ("I pledge as collateral").

Full definition of hypothecation

Noun

1. the use of property, or an existing mortgage, as security for a loan, etc.

Derived terms

• rehypothecation

hypotheticaldedication

Noun

1. (British) A tax levied for a specific expenditure
• It is, however, precisely here that the weakness of hypothecation lies, for governments are not likely readily to surrender control over the disposition of taxes they impose.
• So, strict hypothecation is only advisable when the tax pays entirely and only for that spending programme ...
• Either way, effectively the government is simply using the hypothecated tax as part of general revenue, and the hypothecation is a sham.