hypothecation

noun

1. (countable, uncountable)The use of property, or an existing mortgage, as security for a loan, etc.

   “After the deperdition of Indagator, having an appetency still further to pervstigate the frithy occident; being still an agamist, and not wishing to be any longer a pedaneous viator, nor to be solivagant, I brought about the emption of a yaud, partly by numismatic mutuation, and partly by a hypothecation of my fusee and argental horologe.”

2. (British, countable, uncountable)A tax levied for a specific expenditure.

   “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.”

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

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

   “Local authorities have linked the scheme to broader climate ambitions. Indeed, some of the funding for the stations has come from hypothecation of monies received through Birmingham's Clean Air Zone charges.”