TeachMeFinance.com - explain Hypothecation certificate
Hypothecation certificate -- A certificate lodged by the seller
with the buyer of a bill of exchange drawn against a shipment
of property ; it describes the nature of the shipment and states
that the bill of lading, insurance policy, etc., are lodged and
pledged with the holder of the bill of exchange as security for
the payment of the bill (or for the acceptance of the bill) by
the drawee (the one drawn upon).
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