There are but few cases, if any, in our law, where
an hypothecation, in the strict sense of the Roman
law, exists; that is a pledge without possession by
the pledgee. --Story.
Note: In the modern civil law, this contract has no
application to movable property, not even to ships, to
which and their cargoes it is most frequently applied
in England and America. See {Hypothecate}. --B. R.
Curtis. Domat.
2. (Law of Shipping) A contract whereby, in consideration of
money advanced for the necessities of the ship, the
vessel, freight, or cargo is made liable for its
repayment, provided the ship arrives in safety. It is
usually effected by a bottomry bond. See {Bottomry}.
Note: This term is often applied to mortgages of ships.