Hypothecation

1. Tax.

The restriction of the use of the proceeds of a tax or other charge, for specific purposes.

Hypothecation of climate change tax

'... some states are calling for hypothecation of the [proposed financial transaction] tax to fund climate change investment.

(The Treasurer, November 2015, p13.)

2. Borrowing and lending - collateral.

The pledging of securities or other assets as collateral for a borrowing, without transferring ownership of the assets.

See also

• Collateral
• Financial Transaction Tax
• Hypothecate
• Pledge
• Ring fence
• Tax