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Hypothecation

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)

The deposit of securities or other COLLATERAL, e.g., notes, acceptances, bills of lading, warehouse receipts, etc., as a ;ledge for the payment of a loan.  Securities must be in negotiable form before they are acceptable as collateral.

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