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hypothecate

/hʌɪˈpɒθɪkeɪt/

Meanings
  • Verb

    To pledge an asset as security for a debt or loan.

    - "The borrower had to hypothecate his house to secure the loan."
    - "The bank required the client to hypothecate valuable assets as collateral."

Variants
List of all variants of hypothecate that leads to same result
hypothecate , hypothecated , hypothecates , hypothecating , hypothecation , hypothecations , hypothecator , hypothecators
Etymology
origin and the way in which meanings have changed throughout history.

From the Latin hypotheca, meaning 'pledge, deposit, warehouse'.


Trivia
Any details, considerations, events or pieces of information regarding the word
  1. Hypothecation has been a common practice since ancient times, with evidence dating back to ancient Greece and Rome.

  2. The term 'hypothecation' is also used in the context of warehouse receipts, where goods are stored in a warehouse and used as collateral for a loan.


Related Concepts
informations on related concepts or terms closely associated with the word. Discuss semantic fields or domains that the word belongs to
  1. Mortgage: A loan secured by the collateral of real property.

  2. Collateral: An asset or property pledged as security for a loan.

  3. Secured loan: A loan that is secured by an asset or property.


Culture
Any cultural, historical, or symbolic significance of the word. Explore how the word has been used in literature, art, music, or other forms of expression.

In finance and banking, hypothecation is a common practice to secure loans using assets as collateral. It is often used in real estate transactions and can also apply to other types of assets such as vehicles or equipment.

How to Memorize "hypothecate"

  1. visualize

    - Imagine a borrower pledging an asset, such as a house, to secure a loan.

  2. associate

    - Associate the word 'hypothecate' with the concept of securing a loan using assets as collateral.

  3. mnemonics

    - Use the mnemonic 'Hypo' for Hypothecate, and remember that it refers to securing a loan using assets as collateral.


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