hypothecation

Meanings

• Noun

  The process of using an asset as collateral for a loan.

  - "The bank required her to hypothecate her house as collateral for the loan."
  - "The businessman hypothecated his inventory to secure a line of credit."

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Variants

List of all variants of hypothecation that leads to same result
hypothecate , hypothecated , hypothecates , hypothecating , hypothecation , hypothecations , hypothecator , hypothecators

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Etymology

origin and the way in which meanings have changed throughout history.

Derived from the Greek word hypotheke, meaning 'pledge'.

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Trivia

Any details, considerations, events or pieces of information regarding the word

1. The term 'hypothecation' comes from the Greek word 'hypotheke', which means 'pledge'.

2. Hypothecation is a common practice in the financial industry, particularly in real estate and banking.

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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 common form of hypothecation, where a property is used as collateral for a loan to buy it.

2. Pledge: Another term for a hypothecation, where an asset is used as security for a debt or loan.

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How to Memorize "hypothecation"

1. visualize
   

   - Imagine an asset, such as a house or a car, being used as collateral for a loan. Visualize the lender taking possession of the asset if the borrower fails to repay the loan.

2. associate
   

   - Associate the word 'hypothecation' with the idea of using an asset as collateral for a loan. Remember the Greek origin of the word 'hypotheke' meaning 'pledge'.

3. mnemonics
   

   - Use the mnemonic 'House for a loan' to remember that hypothecation involves using an asset as collateral for a loan.

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