Hypothecation Definition What Is Hypothecation Agreement
What is Hypothecation? Explanation It is almost similar to the mortgage, but there’s a thin line between Mortgage and Hypothecation. In hypothecation, the assets are not immediately transferred to the lender. It does remain in the interest of the borrower. Now, if the borrower is unable to pay the money, then the lender would take possession of it. And then maybe the lender would sell it off to get back the money....