hypothecation
noun [ U ]
uk/haɪˌpɒθəˈkeɪʃən/ us TAX
a situation in which money from a particular tax is only spent on one particular thing:
Traditionally the UK Treasury has rejected the idea of hypothecation.
FINANCE
a situation in which an organization borrows money in relation to particular assets that become the property of the lender if the borrower cannot pay back the loan:
Income Notes are secured by way of hypothecation of the assets covered by each Income Note.