hypothecate

present singular third person hypothecates · participle present hypothecating · participle past hypothecated · past hypothecated

1. transitiveTo pledge (something) as surety for a loan; to pawn, mortgage.

   ‘My husband, Jasper Murdock, provided in his will that no part of his collection might be sold, loaned or hypothecated during my lifetime.’

   1943, Raymond Chandler, The High Window, Penguin, published 2005, page 12

2. UKgovernmentTo designate a new tax or tax increase for a specific expenditure.

   The levy needed primary legislation and permission from the Treasury to hypothecate the proceeds back into the new line. It meant that the Greater London Authority could borrow against future income from the levy.

   2022 November 30, Peter Plisner, “Can land value capture set projects free?”, in RAIL, number 971, page 51

3. AustraliaTo designate in advance the specific purpose of expenditure for government revenues (especially taxes).

   1 more example

   "Levying customs duties and excises on necessities also ensured a relatively secure source of revenue. Revenues were generally hypothecated in an attempt to draw support from the public, for example funding an orphanage, gaol, hospital equipment and building works around Sydney." A brief history of Australia's tax system; Sam Reinhardt and Lee Steel; 04 September 2006