The process of pledging something as security but retaining possession of it The borrower who gives a mortgage to a lender but keeps possession of the mortgaged property has hypothecated the property
To pledge real or personal property as security for a loan or other obligation without surrendering possession of the property The borrower retains the rights of control and possession, and the lender secures an underlying equitable right in the pledged property
To subject, as property, to liability for a debt or engagement without delivery of possession or transfer of title; to pledge without delivery of possession; to mortgage, as ships, or other personal property; to make a contract by bottomry