Talk:Hypothecation

message: Needs rewording, at least.
"Rehypothecation is a professional financial market practice, where counterparty reuses a security pledged as a collateral for its own use."
Is ambiguous and missing an article ("the counterparty").
Is Rehypothecation where the borrower reuses, as collateral, a previously pledged security. Or is it where the lender reuses the security?
I admit that I'm having troubling understanding.
Xkit (talk) 18:19, 31 October 2014 (UTC)
thread_title:  Rehypothecation 

message: "The arrangement is common with modern mortgages - the borrower retains legal ownership of the property but provides the lender with a lien over the property until the debt is paid off." 
- I think that this is wrong. The borrower transfers legal ownership to the lender in a mortgage, and the legal ownership (of the house) is only re-transferred to the borrower when the loan is repaid. Please note, however, I am English and there may be a difference between  UK/US 'mortgages'..
    
In the United States, mortgages are regulated by each state.  In "Lien Theory" states, the borrower (mortgagor of the property) keeps legal ownership and just gives the lender a lien.  In "Title Theory" states, the actual title (ownership) is transferred to the lender until the debt is paid off.  :-)  See:  http://title.grabois.com/  Lawyer2b (talk) 01:26, 26 August 2009 (UTC)
thread_title: Confusion#2

message: I came here from Eldfell, which uses the term "hypothecated sales tax".  It's unclear from the article what this means.  I assume the first definition is the same thing as collateral (finance).   It's unclear from the article whether the second definition is anything different than a Bond (finance), or if it's some kind of per-transaction tax on securities. -- Beland 14:50, 14 April 2006 (UTC)
replies: text: The difference is the fact that in collateral finance there is a transfer of property (possession) which is the collateral. Until the debt is repaid, or if the debt is unpaid the collateral belongs to the debt issuing party. In regards to this definition, there is no transfer of possession. It is just as the term implies. Hypothetical dedication. It is just as you stated for the second definition. "a kind of per-transaction tax on securities.--Gnosis 16:00, 14 April 2006 (UTC)
replies: text: OK, I have re-written the article to be a bit clearer, based on your explanation.  Please check it for accuracy.  The part about shortfalls automatically being made up from other sources is certainly not true.  It's often hotly debated whether or not a dedicated revenue stream is, in fact, not providing adequate funding, and if not, whether other revenues should be diverted.  When budgets are tight, that often just doesn't happen. -- Beland 17:25, 30 April 2006 (UTC)
replies: text: Wouldn't it be clearer just to link to earmark (finance)? Night Gyr (talk/Oy) 08:23, 8 December 2006 (UTC)
replies: text: I have moved the link in Eldfell to hypothecated tax which more closely explains the concept. Sargdub (talk) 22:25, 13 July 2015 (UTC)
thread_title: Confusion

message: I came here for hypothecation and rehypothecation and i feel that if both the topics are rpoperly clubbe together then they might make a better sense
:Agreed. Now done. Klbrain (talk) 06:57, 9 April 2017 (UTC)
thread_title: Merge?

message: Who is the "obligor" referred to in the third paragraph? Is this the same as the debtor? The term is used without definition. Thanks.  — Preceding unsigned comment added by 2601:600:8E00:18BE:A8F2:3F64:29E7:AC63 (talk) 20:17, 8 December 2016 (UTC)
thread_title:  Obligor? 

message: I know finance types might balk at the idea but isn't this the same principle as a pawn shop?  If so it would provide a reference that was culturally comprehensible to that class of people who don't (and probably never will) own a mortgage.  Reading the first line I thought 'pawn shop' but then the example was a mortgage and I wondered if there were a difference, it didn't seem so from the rest of the article. Aach (talk) 11:21, 30 January 2018 (UTC)
thread_title: pawn shop