HYPOTH'ECATE, verb transitive [Latin hypotheca, a pledge; Gr. to put under, to suppose.]

1. To pledge, and properly to pledge the keel of a ship, that is, the ship itself, as security for the repayment of money borrowed to carry on a voyage. In this case the lender hazards the loss of his money by the loss of the ship, but if the ship returns safe, he received his principal, with the premium or interest agreed on, though it may exceed the legal rate of interest.

2. To pledge, as goods.