hypothecation
noun[U]
uk/haɪˌpɒθəˈkeɪʃən/usTAX
asituationin whichmoneyfrom aparticulartaxis onlyspenton oneparticularthing:
Traditionally the UK Treasury hasrejectedtheideaof hypothecation.
FINANCE
asituationin which anorganizationborrowsmoneyinrelationtoparticularassetsthatbecomethepropertyof thelenderif theborrowercannotpayback theloan:
Income Notes aresecuredby way of hypothecation of theassetscoveredby each Income Note.