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
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
(usually uncountable, plural hypothecs)