Glossary entry (derived from question below)
English term or phrase:
hypothecate
English answer:
The bank retains legal ownership of the property until the debt is paid off BUT
Added to glossary by
Anna Maria Augustine (X)
Nov 1, 2006 23:13
17 yrs ago
6 viewers *
English term
Jana Cole (X)
hypothecate
English
Bus/Financial
Real Estate
What is the meaning of this word in this context? The only two meanings I can find are "pledge" (as in a mortgage) and theorize. Neither of those meanings seems to work here. Any suggestions appreciated.
Among other deals in the works, Trump Mortgage has also been hired as exclusive broker to ***hypothecate*** a $25 million mortgage for a 200,000-square-foot building in Columbus, Ohio, in which Trump would sell the mortgage to another investor.
Among other deals in the works, Trump Mortgage has also been hired as exclusive broker to ***hypothecate*** a $25 million mortgage for a 200,000-square-foot building in Columbus, Ohio, in which Trump would sell the mortgage to another investor.
Responses
Change log
Nov 1, 2006 23:20: Tony M changed "Level" from "Non-PRO" to "PRO"
Responses
-2
6 mins
Selected
The bank retains legal ownership of the property until the debt is paid off BUT
Please read the link for a more up to date meaning of the word.
http://en.wikipedia.org/wiki/Hypothecate
http://en.wikipedia.org/wiki/Hypothecate
Peer comment(s):
| disagree |
Richard Benham
: I don't see how this helps. In any case it is simply not true that a financial institution retains legal ownership in the case of a mortgage (or a hypothec for that matter); the Wikipedia entry is rubbish.
1 hr
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| disagree |
Charlesp
: sorry, but wrong. The bank has a secuirty interest, and might be able to take legal title if the loan isn't paid but this specifically and very clearly means that the owner retains legal title (even if they might agree to some restrictions on their use).
2 hrs
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4 KudoZ points awarded for this answer.
Comment: "This was not the exact answer, but it was the most helpful. The traditional meanings were not appropriate."
+3
2 hrs
Kim Metzger
Mexico
Mexico
Native in English
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English
Works in field
Mexico
Committed to Quality and Service
Native in: English (Variant: US) 
Works in: German to English
Related KudoZ points
:
11
to pledge property to secure a loan
This isn't my specialty, so I can't vouch for this definition.
To pledge property to secure a loan. Though title to the property is not transferred, hypothecation creates a right by the creditor to liquidate the property to satisfy the debt in the event of default.
http://insurance.cch.com/rupps/hypothecate.htm
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Note added at 2 hrs (2006-11-02 01:46:47 GMT)
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To pledge (property) as security or collateral for a debt without transfer of title or possession.
http://www.answers.com/topic/hypothecate
hypothecate
v. from Greek for "pledge," a generic term for using property to secure payment of a loan, which includes mortgages, pledges and putting up collateral, while the borrower retains possession.
http://dictionary.law.com/default2.Asp?selected=890&bold=|||...
To pledge property to secure a loan. Though title to the property is not transferred, hypothecation creates a right by the creditor to liquidate the property to satisfy the debt in the event of default.
http://insurance.cch.com/rupps/hypothecate.htm
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Note added at 2 hrs (2006-11-02 01:46:47 GMT)
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To pledge (property) as security or collateral for a debt without transfer of title or possession.
http://www.answers.com/topic/hypothecate
hypothecate
v. from Greek for "pledge," a generic term for using property to secure payment of a loan, which includes mortgages, pledges and putting up collateral, while the borrower retains possession.
http://dictionary.law.com/default2.Asp?selected=890&bold=|||...
Peer comment(s):
| agree |
Charlesp
30 mins
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| agree |
maryrose
: or securities or other assets
1 hr
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| agree |
ErichEko ⟹⭐
: IMHO: to pledge transfer of the title of 200ksqf building estimated to worth $25M as a collateral for a loan...
2 hrs
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2 hrs
to provide a security interest for a loan
lets say it is a verb, and a mortgage is one example of a noun related to this.
Discussion