rehypothecatev.
/ˌriːhʌɪˈpɒθᵻkeɪt/, U.S. /ˌrihəˈpɑθəˌkeɪt/, /ˌrihaɪˈpɑθəˌkeɪt/ Finance (originally and chiefly U.S.).
transitive. To pledge (securities held in brokers' client accounts) as collateral, usually for buying further securities.
ΘΚΠ
society > law > legal obligation > bond or recognizance > requiring or giving legal security > legal security [verb (transitive)] > mortgage > anew
remortgage?1683
rehypothecate1844
1844 N.Y. Herald 16 Dec. These bonds were immediately re-hypothecated by them.
1861 Abstracted Indian Trust Bonds (U.S. Congress) 282 He said if they were hypothecated, that I must take them up and take off the coupons and then re-hypothecate them.
1884 Law Times 78 113 The proposed lender had..never been in a position to make the advance without re-hypothecating the security.
1909 Amer. Polit. Sci. Rev. 3 568 Specifically they recommend laws to prevent brokers from rehypothecating or loaning securities held for customers.
1998 R. J. Teweles & E. S. Bradley Stock Market (ed. 7) xiii. 268 The broker is also within legal rights in rehypothecating a customer's securities.
Derivatives
rehyˈpothecating n. now rare
ΚΠ
1883 W. F. Crafts Successful Men 189 The rehypothecating of trust funds—that is, the secret use of trust funds for speculation.
1909 Jrnl. Polit. Econ. 17 540 Differences of opinion arose in the committee..as to the rehypothecating of securities of customers bought on margin.
1968 N.Y. Suppl. 2nd Ser. 289 644 Sterling had a rehypothecating agreement with plaintiff allowing it to repledge any of plaintiff's securities pledged to it.
This entry has been updated (OED Third Edition, December 2009; most recently modified version published online March 2022).
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