HYPOTH'ECATE, v.t. [L. hypotheca, a pledge; Gr. to put under, to suppose.] 1. To pledge,and properly to pledge the keel of a ship, that is, the ship itself, as security for the repayment of money borrowed to carry on a voyage. In this case the lender hazards the loss of his money by the loss of the ship, but if the ship returns safe, he received his principal,with the premium or interest agreed on, though it may exceed the legal rate of interest. 2. To pledge, as goods.
I. transitive verb (-cated; -cating) Etymology: Medieval Latin hypothecare to pledge, from Late Latin hypotheca pledge, from Greek hypoth?k?, from hypotithenai to put under, deposit as a pledge Date: 1681 to pledge as security without delivery of title or possession • hypothecationnoun • hypothecatornounII. transitive verb (-cated; -cating) Etymology: Greek hypoth?k? suggestion, from hypotithenaiDate: 1906 hypothesize
Hypothecate Hy*poth"e*cate, v. t. [imp. & p. p. Hypothecated; p. pr. & vb. n. Hypothecating.] [LL. hypothecatus, p. p. of hypothecare to pledge, fr. L. hypotheca pledge, security. See Hypotheca.] (Law) To subject, as property, to liability for a debt or engagement without delivery of possession or transfer of title; to pledge without delivery of possession; to mortgage, as ships, or other personal property; to make a contract by bottomry. See Hypothecation, Bottomry. He had found the treasury empty and the pay of the navy in arrear. He had no power to hypothecate any part of the public revenue. Those who lent him money lent it on no security but his bare word. --Macaulay.