Origin of hypothecFrench hypothèque from Late Latin hypotheca, a pledge, security from Classical Greek hypoth?k?, something put under (obligation), pledge from hypotithenai, to put under, pledge: see hypothesis
The definition of a hypothec is the right of a creditor to take a borrower's property if a debt or obligation isn't repaid, but in the meantime, the property stays in the borrower's possession.
An example of a hypothec is a person using farming equipment as security for a loan, which can be reclaimed and sold if the loan isn't repaid.
Civil Law security or right given to a creditor over a debtor's property without transfer of possession or title
(usually uncountable, plural hypothecs)
- Under the law of Scotland down to 1880, a landlord had as security for rent due on an agricultural lease a " hypothec " - i.e.
- It was abolished in 1880 as regards all leases entered into after the 11th of November 1881, where the land demised exceeded two acres in extent, and the landlord was left to remedies akin to ejectment (Hypothec Abolition, Scotland, Act 1880).
- But the abolition of the law of hypothec in 1879 - under which the landlord had a lien for rent upon the produce of the land, the cattle and sheep fed on it, and the live stock and implements used in husbandry - the Ground Game Act of 1880, the sevekal Agricultural Holdings Acts, and the construction of light railways improved matters and established a better understanding.