Definition

A legal term referring to a type of security interest in property, where a borrower pledges an asset as collateral for a loan without transferring ownership.

Example

The bank required a hypothec on the property before approving the loan.

Conversation

Have you ever thought about what a hypothec really means?

Not really, I just know it's related to finance somehow.

Yeah, it refers to everything you might pledge as security for a loan.

Oh, that makes sense! So it's like collateral for a mortgage?

Synonyms & Antonyms

Root Explanation

Hypothec is derived from the Greek word "hypotheke" (meaning a pledge or deposit) and the Latin "hypotheca" (meaning a mortgage or pledge). The word refers to a legal claim or right on property as security for a debt.

Memory Tip

Think of a 'pledge' ('hypotheke') that secures a loan — that's what hypothec means.

Visually Confused Words