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