hypothecation

hypothecate +‎ -ion. From Latin hypothecatio, in turn from hypotheco (“I pledge as collateral”).

hypothecation (countable and uncountable, plural hypothecations)

1. the use of property, or an existing mortgage, as security for a loan, etc.

• rehypothecation

Blend of hypothetical +‎ dedication

hypothecation (plural hypothecations)

1. (Britain) A tax levied for a specific expenditure
   • 1984, John R. Butler & Michael S. B. Vaile, Health and Health Services: An Introduction to Health Care in Britain‎, →ISBN, page 68:

     It is, however, precisely here that the weakness of hypothecation lies, for governments are not likely readily to surrender control over the disposition of taxes they impose.

   • 2006, Dominic Maxwell, “Towards a citizen's inheritance”, in The Citizen's Stake‎, →ISBN, page 49:

     So, strict hypothecation is only advisable when the tax pays entirely and only for that spending programme […]

   • 2006, Julian Le Grand, Motivation, Agency, and Public Policy‎, →ISBN, page 155:

     Either way, effectively the government is simply using the hypothecated tax as part of general revenue, and the hypothecation is a sham.