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Hypothecation

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HYPOTHECATION - An agreement whereby someone puts up collateral to secure the debt of another. This means that someone may agree that a piece of real estate will be collateral for a debt.

 


HYPOTHECATION, civil law. This term is used principally in the civil law; it is defined to be a right which a creditor has over a thing belonging to another, and which consists in the power to cause it to be sold, ...

any claim in respect of a mortgage or hypothecation of, or charge on, a ship or any part interest therein or any charge in the nature of bottomry or respondentia for which a ship or part interest therein or cargo was made security; ...

gɪdÊ' \ "Mortgage" or "Lien" includes deed of trust, vendor 's lien, chattel mortgage, mechanic 's, materialman 's or laborer 's lien, judgment, attachment or garnishment lien, pledge by hypothecation, and Federal or State tax liens. (CHAPTER I, Sec.

The main difference between Deed and an agreement is that the deed is generally signed by only one person / party. Examples of the Deed can be Deed of Hypothecation for creating charge on movable properties in favour of the banks.

See also: Agreement, Person, Law, Property, Reference

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