Talk:Hypothecation

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[edit] Confusion

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)

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)

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)

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

Wouldn't it be clearer just to link to earmark? Night Gyr (talk/Oy) 08:23, 8 December 2006 (UTC)