hypothec

A bank holds a hypothec on the family's house.

Definition

1. Noun (Law):
   • A right or security in favor of a creditor over a debtor's property, typically immovable property (such as land or buildings), without the creditor taking possession of the property. It is a form of mortgage or pledge that does not involve physical transfer of the asset.

Usage Examples

• (The bank had a legal claim on the land without owning it.)
• (A legal right to take property as security.)
• (The legal claim was officially documented.)

Advanced Usage

• "Hypothecary" (adj): relating to or constituting a hypothec.
  • The hypothecary claim was enforced after the debtor defaulted. (The legal security right was exercised.)
• "Hypothecate" (verb): to pledge property as security for a debt without transferring possession.
  • The company hypothecated its inventory to secure a line of credit. (They used goods as collateral without giving them up.)

Variants and Related Words

• Hypothecation (n): the act of pledging property as security for a debt.
  • Hypothecation is common in maritime law, where ships are used as collateral. (The process of creating a hypothec.)
• Hypothecary (adj): of or pertaining to a hypothec.
  • The hypothecary agreement was signed by both parties. (The document establishing the security right.)

Synonyms

• Lien: a legal right to keep or sell property to satisfy a debt.
• Mortgage: a specific type of hypothec involving real property, often with transfer of title.
• Pledge: a security interest where the creditor takes possession of the property (unlike a hypothec).

Related Idioms

• "Under hypothec": subject to a legal claim as security.
  • The property was under hypothec to several creditors. (It was encumbered by multiple security interests.)

Phrasal Verbs