Definition

To use property as a guarantee for a loan or debt, while still keeping ownership of that property.

Example

The bank agreed to hypothecate the house as collateral for the mortgage.

Tense Forms

Conversation

I heard you might hypothecate your car for that loan.

Yeah, it seems like the easiest option right now.

Isn't that risky, though? What if you can't repay it?

True, but it's better than losing my other assets.

Synonyms & Antonyms

Root Explanation

Hypothecate → It is formed from "hypo-" (meaning under) and "theke" (from Greek "thēkē", meaning a deposit or a place to put). The word refers to placing something as security under a loan or obligation, essentially putting it down as a deposit.

Memory Tip

Think of putting something 'under' ('hypo-') as a 'deposit' ('theke') to secure a loan — that's what hypothecate means.

Visually Confused Words