What is the meaning of Hypothetication Agreements?

Are legal documents which define the pledging of collateral. A mortgage defines the collateral for a real estate loan or Note and a securities hypothecation agreement permits margin accounts and futures accounts by stating what is being pledged to cover positions, debit balances, or even deficit balances. Generally, this document allows the owner to enjoy the usage of the property provided that no default occurs. In the event of a default the property can go to the creditor to satisfy the claim. The residual value, if any, would then go to the owner.

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APABarry Goldsmith. (2010). Hypothetication Agreements. Retrieved September 25, 2026, from http://smartdefine.org/hypothetication_agreements/definitions/1155677
ChicagoBarry Goldsmith. 2010. "Hypothetication Agreements" http://smartdefine.org/hypothetication_agreements/definitions/1155677 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, Hypothetication Agreements, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/hypothetication_agreements/definitions/1155677>.
MLABarry Goldsmith. "Hypothetication Agreements" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/hypothetication_agreements/definitions/1155677>