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Collateralizing arrangement in which neither the possession nor the title but only the right to sell an asset or property passes on to the creditor or lender (called a grantee). Arrangement where the grantee has the possession and right to sell, but not the title, is called pledging.

Use 'hypothecation' in a Sentence

I had to be explained hypothecation by the man and it made me uneasy cause I knew the process would be kind of hard.
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You need to figure out how to use hypothecation to your advantage and come up with ways that it can help you.
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Patent lawyers often deal with hypothecation and all of the convoluted and abstract ideas that go into litigating over an idea or pledging.
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