What is HYPOTHECA

“Ilypotheca” was a term of the Itoman law, and denoted a pledge ormortgage. As distinguished from the term “pignus,” in the same law, it denoted a mortgage,whether of lands or of goods, in which the subject iu pledge remained in the possessionof the mortgagor or debtor; whereas in the pignus the mortgagee or creditorwas in the possession. Such an hypotheca might be either express or implied; express,where the parties upon the occasion of a loan entered into express agreement to thateffect; or implied, as, e. g., in tlie case of the stock and utensils of a farmer, which weresubject to the landlord’s right as a creditor for rent; whence the Scotch law of hypothec.The word has suggested the term ” hypothecate ,” as used in the mercantile andmaritime law of England. Thus, under the factor’s act, goods are frequently said to be”hypothecated;” and a captain is said to have a right to hypothecate his vessel fornecessary repairs. Brown. See Mackeld. Horn. Law,