Your one-stop location for bankruptcy news and information.

What Does Hypothecation Mean?

by Nicholas Ortiz, Boston Bankruptcy Attorney on October 10, 2007 · 0 comments · Posted in General Bankruptcy Information

Hypothecation is a pledge of property as collateral for a debt when the debtor holds back the right of possession of the collateral. The debtor retains legal title to the collateral but grants the lender a lien on it. This is the case in many security interest situations, like home mortgages and car loans. Terms like hypothecation are no longer used in Article 9 of the U.C.C.–the term “security interest” is now used.

No related posts.

Previous post:

Next post: