To make property the security for a
loan without giving up possession of it (as with a
mortgage). Compare: Pledge.

Merriam-Webster Online Dictionary
hypothecate (verb)
transitive verb
to pledge as security without delivery of title or possession
hypothecate (verb)
transitive verb
- hypothesize
Merriam-Webster Online Thesaurus
hypothecate (verb)
to take as true or as a fact without actual proof
hypothecate, hypothesize, postulate, premise, presume, presuppose, say, suppose
accept, believe, credit, swallow; conclude, deduce, gather, infer, judge, take; conjecture, figure, guess, reckon [], surmise, suspect, suspicion [], think; conceive, dream, fancy, imagine, perceive, preconceive; speculate, theorize; affirm, allege, assert, aver, avouch, avow, claim, contend, declare, insist, maintain, profess
challenge, controvert, disagree (with), disbelieve, discount, discredit, dispute, distrust, doubt, mistrust, question, wonder (about); deny, disavow, disclaim, disown, reject, repudiate; belie, confute, disprove, rebut, refute
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