hypothecation

English

Etymology 1

hypothecate +‎ -ion. From Latin hypothecatio, in turn from hypothecare (“to pledge as collateral”).

Noun

Wikipedia hypothecation (plural hypothecations)

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

Derived terms

• rehypothecation

Translations

the use of property as security for a loan

• Finnish: panttaus (fi), vakuusjärjestely (fi), takaus (fi)
• German: Verpfändung (de) f

• Icelandic: veðsetning (is) f
• Korean: 담보 (ko) (dambo)

Etymology 2

Blend of hypothetical and dedication

Noun

hypothecation (plural hypothecations)

1. (UK) A tax levied for a specific expenditure
   • 1984, John R. Butler & Michael S. B. Vaile, Health and Health Services: An Introduction to Health Care in Britain^[1], ISBN 0710099029, page 68:

     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.

   • 2006, Dominic Maxwell, “Towards a citizen's inheritance”, in The Citizen's Stake^[2], ISBN 1861346999, page 49:

     So, strict hypothecation is only advisable when the tax pays entirely and only for that spending programme […]

   • 2006, Julian Le Grand, Motivation, Agency, and Public Policy^[3], ISBN 0199298912, page 155:

     Either way, effectively the government is simply using the hypothecated tax as part of general revenue, and the hypothecation is a sham.