hypothecate

English translation: The bank retains legal ownership of the property until the debt is paid off BUT

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:hypothecate
Selected answer:The bank retains legal ownership of the property until the debt is paid off BUT
Entered by: Anna Maria Augustine (X)

23:13 Nov 1, 2006
English language (monolingual) [PRO]
Bus/Financial - Real Estate
English term or phrase: hypothecate
What is the meaning of this word in this context? The only two meanings I can find are "pledge" (as in a mortgage) and theorize. Neither of those meanings seems to work here. Any suggestions appreciated.

Among other deals in the works, Trump Mortgage has also been hired as exclusive broker to ***hypothecate*** a $25 million mortgage for a 200,000-square-foot building in Columbus, Ohio, in which Trump would sell the mortgage to another investor.
Jana Cole (X)
Local time: 06:24
The bank retains legal ownership of the property until the debt is paid off BUT
Explanation:
Please read the link for a more up to date meaning of the word.
http://en.wikipedia.org/wiki/Hypothecate
Selected response from:

Anna Maria Augustine (X)
France
Local time: 14:24
Grading comment
This was not the exact answer, but it was the most helpful. The traditional meanings were not appropriate.
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
3 +3to pledge property to secure a loan
Kim Metzger
5to provide a security interest for a loan
Charlesp
4 -2The bank retains legal ownership of the property until the debt is paid off BUT
Anna Maria Augustine (X)


Discussion entries: 1





  

Answers


6 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -2
The bank retains legal ownership of the property until the debt is paid off BUT


Explanation:
Please read the link for a more up to date meaning of the word.
http://en.wikipedia.org/wiki/Hypothecate

Anna Maria Augustine (X)
France
Local time: 14:24
Native speaker of: Native in EnglishEnglish, Native in FrenchFrench
PRO pts in category: 8
Grading comment
This was not the exact answer, but it was the most helpful. The traditional meanings were not appropriate.

Peer comments on this answer (and responses from the answerer)
disagree  Richard Benham: I don't see how this helps. In any case it is simply not true that a financial institution retains legal ownership in the case of a mortgage (or a hypothec for that matter); the Wikipedia entry is rubbish.
1 hr

disagree  Charlesp: sorry, but wrong. The bank has a secuirty interest, and might be able to take legal title if the loan isn't paid but this specifically and very clearly means that the owner retains legal title (even if they might agree to some restrictions on their use).
2 hrs
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2 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +3
to pledge property to secure a loan


Explanation:
This isn't my specialty, so I can't vouch for this definition.

To pledge property to secure a loan. Though title to the property is not transferred, hypothecation creates a right by the creditor to liquidate the property to satisfy the debt in the event of default.

http://insurance.cch.com/rupps/hypothecate.htm


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Note added at 2 hrs (2006-11-02 01:46:47 GMT)
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To pledge (property) as security or collateral for a debt without transfer of title or possession.
http://www.answers.com/topic/hypothecate

hypothecate
v. from Greek for "pledge," a generic term for using property to secure payment of a loan, which includes mortgages, pledges and putting up collateral, while the borrower retains possession.

http://dictionary.law.com/default2.Asp?selected=890&bold=|||...


Kim Metzger
Mexico
Local time: 07:24
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 11

Peer comments on this answer (and responses from the answerer)
agree  Charlesp
30 mins

agree  maryrose: or securities or other assets
1 hr

agree  ErichEko ⟹⭐: IMHO: to pledge transfer of the title of 200ksqf building estimated to worth $25M as a collateral for a loan...
2 hrs
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2 hrs   confidence: Answerer confidence 5/5
to provide a security interest for a loan


Explanation:
lets say it is a verb, and a mortgage is one example of a noun related to this.

Charlesp
Sweden
Local time: 14:24
Works in field
Native speaker of: English
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