/haɪˈpɒθɪˌkeɪtʃən/ – noun
Definition: 1. vật, cầm cố, đồ thế chấp, tài sản thế chấp
2. vay cầm tàu;
3. việc cầm cố, việc thế chấp.
A more thorough explanation: Hypothecation is a legal term that refers to the practice of pledging an asset as collateral for a debt without transferring ownership of the asset. In the event that the borrower defaults on the debt, the lender has the right to seize the asset to satisfy the debt.
Example: The bank required the borrower to sign a document allowing for the hypothecation of their car as collateral for the loan.