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Rehypothecation vs Hypothecate - What's the difference?

rehypothecation | hypothecate | Derived terms |

Rehypothecation is a derived term of hypothecate.


As a noun rehypothecation

is (finance) the pledge of hypothecated client-owned securities in a margin account to secure a bank loan; usually used for mortgages.

As a verb hypothecate is

to pledge (something) as surety for a loan; to pawn, mortgage.

rehypothecation

Noun

(s)
  • (finance) The pledge of hypothecated client-owned securities in a margin account to secure a bank loan; usually used for mortgages.
  • hypothecate

    English

    Verb

    (hypothecat)
  • To pledge (something) as surety for a loan; to pawn, mortgage.
  • *1943 , (Raymond Chandler), The High Window , Penguin 2005, p. 12:
  • *:‘My husband, Jasper Murdock, provided in his will that no part of his collection might be sold, loaned or hypothecated during my lifetime.’
  • (politics, British) To designate a new tax or tax increase for a specific expenditure
  • Usage notes

    *Often wrongly used in place of the word hypothesize .

    Derived terms

    * hypothecable * hypothecatable * hypothecatee * hypothecation * hypothecator * rehypothecate (rehypothecation)