Hypothecation

2 In Roman law, a pledge without possession by the pledgee, — the possession remaining in the pledgor. ^ A security whereby realty or personalty is appropriated or pledged for the discharge of a debt or engagement, with no transfer of property or of possession, the debt being viewed as tacked to and following the thing.< There is no pure hypotheca in our law. ^ppreaches to it are, bottomry bonds, maritime liens of material -men, and seaman's wages. ^ Hypothecary; hypothecator. One who proposes and makes a contract of hypothecation.

Hypothecation bond

A bottomry or respondentia bond. Evidences a marine hypothecation of a vessel or its cargo, for necessary repairs or supplies.* The hypothecation of a vessel is authorized by the necessity of obtaining the means to prosecute the voyage, and inability to get the required funds in any other way.' Established rules as to marine hypothecation are: 1. Liens for repaii-s and supplies, or for funds to pay for th^ same, are enforceable only upon proof that the same were necessary, or believed to be necessary.

2.

Where proof is made of the necessity, and of credit given to the ship, a presumption arises of a necessity for the credit.

3.

Necessity is proven when such circumstances of urgency are shown as would induce a prudent owner, if present, to order the repairs or supplies, or to provide funds for the cost on the security of the ship.

4.

An order by the master is sufficient proof of such necessity to support an implied hypoth- ■See Code, 1887, §3072. "L. hypotheca: Gk. hypo, under; tith-, to place; to obligate, charge. » See 2 BI. Com. 159. < See Herman, Mortgages, §§ 8, 1; Taylor v. Hudgins, 42 Tex. 247 (1875). = [Stoiy, Bailm., 9 ed., § 288; The Young.Mechanic, 2 Curtis, 410 (1855). « The Grapeshot, 9 Wall. 140-41 (1869), Chase, C. J.; The Julia Blake, 107 U. S. 418 (1882), oases, Waite, C. J.; 16 Blatch. 472. ' Delaware Mut. Safety Ins. Co. v. Gossler, 96 U. S. ecation in favor of a material-man or lender of money who acts in good faith. 5. To support an hypothecation by bottomry, evidence of actual necessity is required. If the fact of necessity is left unproved, evidence is required of due inquiry and of reasonable ground of belief that the necessity was real and exigent' It communication with the owner is practicable, that must first be had.' Hypothecation bonds must be recorded by collectors of customs.' See Bottomry; Eespondkntia.