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TeachMeFinance.com - explain hypothecate hypothecate -- to pledge property as security for a debt without giving up possession or title. The pledged property is said to be hypothecated. For example, a savings or trust account that is pledged or assigned as collateral for a loan is called a hypothecated account. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.