Page 1 of 1

Pledge and Hypothecate

Posted: Tue Aug 18, 2015 1:02 pm
by notmartha
If I promise this (property, allegiance, money, resources, life, labor, etc.) so you will give me that (loan, benefits, protection, etc.) I’m making a pledge. The thing pledged is also called a pledge (noun). To understand how STATE gained interest in you and your property, you must understand how a system of pledges and hypothecation works. Also refer to surety.

KJV References

ʿErābôn, Hebrew Strong's # 6162, is used three times in the Old Testament. It is translated “pledge” in the following verses:
Genesis 38:17-20 - And he said, I will send thee a kid from the flock. And she said, Wilt thou give me a pledge, till thou send it? And he said, What pledge shall I give thee? And she said, Thy signet, and thy bracelets, and thy staff that is in thine hand. And he gave it her, and came in unto her, and she conceived by him. And she arose, and went away, and laid by her vail from her, and put on the garments of her widowhood. And Judah sent the kid by the hand of his friend the Adullamite, to receive his pledge from the woman's hand: but he found her not.
Hābal, Hebrew Strong's #2254, is used 29 times in the Old Testament. It is translated as destroy (7), take a pledge (5), pledge (5), bands (2), brought forth (2), at all (1), corrupt (1), corruptly (1), offend (1), spoil (1), travaileth (1), very (1), and withholden (1). It is translated as “pledge” in the following verses:
Exodus 22:26 - If thou at all take thy neighbour's raiment to pledge, thou shalt deliver it unto him by that the sun goeth down:
Deuteronomy 24:6-7 - No man shall take the nether or the upper millstone to pledge: for he taketh a man's life to pledge. If a man be found stealing any of his brethren of the children of Israel, and maketh merchandise of him, or selleth him; then that thief shall die; and thou shalt put evil away from among you
Job 22:6 - For thou hast taken a pledge from thy brother for nought, and stripped the naked of their clothing.
Job 24:2-3 - Some remove the landmarks; they violently take away flocks, and feed thereof. They drive away the ass of the fatherless, they take the widow's ox for a pledge.
Job 24:9 - They pluck the fatherless from the breast, and take a pledge of the poor.
Proverbs 20:16 - Take his garment that is surety for a stranger: and take a pledge of him for a strange woman.
Proverbs 27:13 -Take his garment that is surety for a stranger, and take a pledge of him for a strange woman.
Amos 2:8 - And they lay themselves down upon clothes laid to pledge by every altar, and they drink the wine of the condemned in the house of their god.
ʿAbôṭ, Hebrew Strong's # 5667, is used 4 times in the Old Testament. It is translated as “pledge” in the following verses:
Deuteronomy 24:11-13 - Thou shalt stand abroad, and the man to whom thou dost lend shall bring out the pledge abroad unto thee. And if the man be poor, thou shalt not sleep with his pledge: In any case thou shalt deliver him the pledge again when the sun goeth down, that he may sleep in his own raiment, and bless thee: and it shall be righteousness unto thee before the LORD thy God.
ʿArubbâ, Hebrew Strong's # 6161, is used two times in the Old Testament. It is translated pledge (1), and surety (1). It is translated as “pledge” in the following verse:
1 Samuel 17:18 - And carry these ten cheeses unto the captain of their thousand, and look how thy brethren fare, and take their pledge.
Habōl, Hebrew Strong's #2258, is used 4 times in the Old Testament. It is translated as “pledge” in the following verses:
Ezekiel 18:7 - And hath not oppressed any, but hath restored to the debtor his pledge, hath spoiled none by violence, hath given his bread to the hungry, and hath covered the naked with a garment;
Ezekiel 18:12 - Hath oppressed the poor and needy, hath spoiled by violence, hath not restored the pledge, and hath lifted up his eyes to the idols, hath committed abomination,
Ezekiel 18:16 - Neither hath oppressed any, hath not withholden the pledge, neither hath spoiled by violence, but hath given his bread to the hungry, and hath covered the naked with a garment,
Ezekiel 33:15 - If the wicked restore the pledge, give again that he had robbed, walk in the statutes of life, without committing iniquity; he shall surely live, he shall not die.
ʿArab, Hebrew Strong's #6148, is used 22 times in the Old Testament. It is translated as surety (9), meddle (2), mingled (2), pledges (2), becometh (1), engaged (1), intermeddle (1), mortgaged (1), occupiers (1), occupy (1), undertake (1). It is translated as “pledges” in the following verses:
2 Kings 18:23 - Now therefore, I pray thee, give pledges to my lord the king of Assyria, and I will deliver thee two thousand horses, if thou be able on thy part to set riders upon them.
Isaiah 36:8 - Now therefore give pledges, I pray thee, to my master the king of Assyria, and I will give thee two thousand horses, if thou be able on thy part to set riders upon them.
Easton's Bible Dictionary, M.G. Easton, 1897
Pledge\ See LOAN

Loan\ The Mosaic law required that when an Israelite needed to borrow, what he asked was to be freely lent to him, and no interest was to be charged, although interest might be taken of a foreigner (Ex. 22:25; Deut. 23:19, 20; Lev. 25:35 38). At the end of seven years all debts were remitted. Of a foreigner the loan might, however, be exacted. At a later period of the Hebrew commonwealth, when commerce increased, the practice of exacting usury or interest on loans, and of suretiship in the commercial sense, grew up. Yet the exaction of it from a Hebrew was regarded as discreditable (Ps. 15:5; Prov. 6:1, 4; 11:15; 17:18; 20:16; 27:13; Jer. 15:10). Limitations are prescribed by the law to the taking of a pledge from the borrower. The outer garment in which a man slept at night, if taken in pledge, was to be returned before sunset (Ex. 22:26, 27; Deut. 24:12, 13). A widow's garment (Deut. 24:17) and a millstone (6) could not be taken. A creditor could not enter the house to reclaim a pledge, but must remain outside till the borrower brought it (10, 11). The Hebrew debtor could not be retained in bondage longer than the seventh year, or at farthest the year of jubilee (Ex. 21:2; Lev. 25:39, 42), but foreign sojourners were to be "bondmen for ever" (Lev. 25:44 54).
And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.
Webster’s 1828
PLEDGE, noun [Latin plico.]

1. Something put in pawn; that which is deposited with another as security for the repayment of money borrowed, or for the performance of some agreement or obligation; a pawn. A borrows ten pounds of B, and deposits his watch as a pledge that the money shall be repaid; and by repayment of the money, A redeems the pledge

2. Any thing given or considered as a security for the performance of an act. Thus a man gives a word or makes a promise to another, which is received as a pledge for fulfillment. The mutual affection of husband and wife is a pledge for the faithful performance of the marriage covenant. Mutual interest is the best pledge for the performance of treaties.

3. A surety; a hostage.

4. In law, a gage or security real or personal, given for the repayment of money. It is of two kinds; vadium vivum, a living pledge as when a man borrows money and grants an estate to be held by the pledgee, till the rents and profits shall refund the money, in which case the land or pledge is said to be living; or it is vadium mortuum, a dead pledge called a mortgage.

5. In law, bail; surety given for the prosecution of a suit, or for the appearance of a defendant, or for restoring goods taken in distress and replevied. The distress itself is also called a pledge and the glove formerly thrown down by a champion in trial by battel, was a pledge by which the champion stipulated to encounter his antagonist in that trial.

6. A warrant to secure a person from injury in drinking.
To put in pledge to pawn.
To hold in pledge to keep as security.

PLEDGE, verb transitive

1. To deposit in pawn; to deposit or leave in possession of a person something which is to secure the repayment of money borrowed, or the performance of some act. [This word is applied chiefly to the depositing of goods or personal property. When real estate is given as security we usually apply the word mortgage.]

2. To give as a warrant or security; as, to pledge one's word or honor; to pledge one's veracity.

3. To secure by a pledge
I accept her,
And here to pledge my vow I give my hand. [Unusual.]

4. To invite to drink by accepting the cup or health after another. Or to warrant or be surety for a person that he shall receive no harm while drinking, or from the draught; a practice which originated among our ancestors in their rude state, and which was intended to secure the person from being stabbed while drinking, or from being poisoned by the liquor. In the first case, a by-stander pledges the person drinking; in the latter, the person drinking pledges his guest by drinking first, and then handing the cup to his guest. The latter practice is frequent among the common people in America to this day; the owner of the liquor taking the cup says to his friend, I pledge you, and drinks, then hands the cup to his guest; a remarkable instance of the power of habit, as the reason of the custom has long since ceased.
Bouvier’s Dictionary of Law, 1856:
PLEDGE or PAWN, contracts.

1. These words seem indifferently used to convey the same idea. Story on Bailm. §286.

2. In the civil code of Louisiana, however, they appear not to have exactly the same meaning. It is there said that pledges are of two kinds, namely, the pawn, and the antichresis. Louis'. Code, art. 3101.

3. Sir William Jones defines a pledge to be a bailment of goods by a debtor to his creditor, to be kept till the debt is discharged. Jones' Bailm. 117; Id. 36. Chancellor Kent, 2 Kent's Com. 449, follows the same definition, and see 1 Dane's Abr. c. 17, art. 4. Pothier, De Nantissement, art. prelim. 1, defines it to be a contract by which a debtor gives to his creditor a thing to detain as security for his debt. The code Napoleon has adopted this definition, Code Civ. art. 2071, and the Civil Code of Louisiana has followed it. Louis. Code, 3100. Lord Holt's definition is, when goods or chattels are delivered to another as a pawn, to be security for money borrowed of him by the bailor - and this, he adds, is called in Latin vadium, and in English, a pawn or pledge. Ld. Raym. 909, 913.

4. The foregoing definitions are sufficiently descriptive of the nature of a pawn or pledge but they are in terms limited to cues where a thing is given as a security for a debt; but a pawn may well be made as security for any other engagement. 2 Bulst. 306; Pothier, De Nantissement, n. 11. The definition of Domat is, therefore, more accurate, because it is more comprehensive, namely, that it is an appropriation of the thing given for the security of an engagement. Domat, B. 3, tit. 1, §1, n. 1. And, according to Judge Story, it may be defined to be a bailment of personal property, as security for some debt or engagement. Story on Bailm. §286.

5. The term pledge or pawn is confined to personal property; and where real or personal property is transferred by a conveyance of the title, as a security, it is commonly denominated a mortgage.

6. A mortgage of goods is, in the common law, distinguishable from a mere pawn. By a grant or a conveyance of goods in gage or mortgage, the whole legal title passes conditionally to the mortgagee; and if not redeemed at the time stipulated, the title becomes absolute at law, though equity will interfere to compel a redemption. But in a pledge a special property only passes to the pledges, the general property remaining in the pledger. 1 Atk. 167; 6 East, 25; 2 Caines' C. Err. 200; 1 Pick. 889; 1 Pet. S. C. B. 449 2 Pick. R. 610; 5 Pick. R. 60; 8. Pick. R. 236; 9 Greenl. R. 82; 2 N. H. Rep. 13; 5 N. H. Rep. 545; 5 John. R. 258; 8 John. R. 97; 10 John. R. 471; 2 Hall, R. 63; 6 Mass. R. 425; 15 Mass. R. 480. A mortgage may be without possession, but a pledge cannot be without possession. 5 Pick. 59, 60; and see 2 Pick. 607.

7. Things which are the subject of pledge or pawn are ordinarily goods and chattels; but money, negotiable instruments, choses in action, and indeed any other valuable thing of a personal nature, such as patent-rights and manuscripts, may, by the common law, be delivered in pledge. 10 Johns. R. 471, 475; 12 Johns. R. 146; 10 Jonhs. R. 389; 2 Blackf. R. 198; 7 Greenl. R. 28; 2 Taunt. R. 268; 13 Mass. 105; 15 Mass. 389; Id. 534; 2 Caines' C. Err. 200; 1 Dane's Abr. ch. 17, art. 4, § ii. See Louis. Code, art. 3121.

8. It is of the essence of the contract, that there should be an actual delivery of the thing. 6 Mass. 422; 15 Mass. 477 14 Mass. 352; 2 Caines' C. Err. 200; 2 Kent's Com. 452; Bac. Abr. Bailment, B; 2 Rolle R. 439; 6 Pick. R. 59, 60; Pothier, De Nantissement, n. 8, 9; Louis. Code, 3129. What will amount to a delivery, is matter of law. See Delivery.

9. It is essential that the thing should be delivered as a security for some debt or engagement. Story on Bailm. §300. And see 3 Cranch, 73; 7 Cranch, 34; 2 John. Ch. R. 309; 1 Atk. 236; Prec. in Ch. 419; 2 Vern. 691; Gilb. Eq. R. 104; 6 Mass. 339; Pothier, Nantissement, n. 12; Civ. Code of Lo. art. 3119; Code Civ. art. 2076.

10. In virtue of the pawn the pawnee acquires, by the common law, a special property in the thing, and is entitied to the possession of it exclusively, during the time and for the objects for which it is pledged. 2 Bl. Com. 396; Jones' Bailm. 80; Owen R. 123, 124; 1 Bulst. 29; Yelv. 178 Cro. Jac. 244; 2 Ld. Raym. 909, 916; Bac. Abr. Bailment, B; 1 Dane's Abr. ch. 17, art. 4, SSSS 1, 6; Code Civ. art. 2082; Civ. Code of Lo. art. 3131. And he has a right to sell the pledge, when there has been a default in the pledger in complying with his engagement. Such a default does not divest the general property of the pawner, but still leaves him a right of redemption. But if the, pledge is not redeemed within the stipulated time, by a due performance of the contract for which it is a security, the pawnee has then a right to sell it, in order to have his debt or indemnity. And if there is no stipulated time for the payment of the debt, but the pledge is for an indefinite period, the pawnee has a right, upon request, to a prompt fulfilment of the agreement; and if the pawner refuses to comply, the pawnee may, upon demand and notice to the pawner, require the pawn to be sold. 2 Kent's Com. 452; Story on Bailm. 308.

11. The pawnee is bound to use ordinary diligence in keeping the pawn, and consequently is liable for ordinary neglect in keeping it. Jones'-Bailm. 75; 2 Kent's Com. 451; 1 Dane's Abr. ch. 17, art. 12; 2 Ld. Raym, 909, 916; Domat B 1, tit. 1, §4, n. 1.

12. The pawner has the right of redemption. If the pledge is conveyed by way of mortgage, and thus passes the legal title, unless he redeems the pledge at a stipulated time, the title of the pledge becomes absolute at law; and the pledger has no remedy at law, but only a remedy in equity to redeem. 2 Ves. Jr. 378; 2 Caines' C. Err. 200. If, however, the transaction is not a transfer of ownership, but a mere pledge, as the pledger has never parted with the general title, he may, at law, redeem, notwithstanding he has not strictly complied with the condition of his contract. Com. Dig. Mortgage, B; 1 Pow. on Mortg. by Coventry & Land. 401, and notes, ibid. See further, as to the pawner's right of redemption, Story on Bailm. §§345 to 349.

13. By the act of pawning, the pawner enters into an implied agreement or warranty that he is the owner of the property pawned, and that he has a good right to pass the title. Story on Bailm. §354.

14. As to the manner of extinguishing the contract of pledge or mortgage of personal property, see Story on Bailm. 359 to 366.

PLEDGE, contracts. He who becomes security for another, and, in this sense, every one who becomes bail for another is a pledge. 4 Inst. 180 Com. Dig. B. See Pledges.

PLEDGER. The same as pawner. (q. v.)

PLEDGEE. The same as pawnee. (q. v.)

PLEDGES, pleading. It was anciently necessary to find pledges or sureties to prosecute a suit, and the names of the pledges were added at the foot of the declaration; but in the course of time it became unnecessary to find such pledges because the plaintiff was no longer liable to be amerced, pro falsa clamora, and the pledges were merely nominal persons, and now John Doe and Richard Roe are the universal pledges; but they may be omitted altogether; 1 Tidd's. Pr. 455; Arch. Civ. Pl. 171; or inserted at any time before judgment. 4 John. 190.
Commentaries on the Laws of England in Four Books, vol. 1, 1753, (revised 1893), pgs. 327-328
This policy of the English parliament laid the foundation of what is called the national debt: for a few long annuities created in the reign of Charles II. will hardly deserve that name. And the example then set has been so closely followed during the long wars in the reign of queen Anne, and since, that the capital of the national debt (funded and unfunded) amounted at the close of the session in June, 1777, to about an hundred and thirty-six millions: to pay the interest of which, together with certain annuities for lives and years, and the charges of management, amounting annually to upwards of four millions and three-quarters, the extra ordinary revenues just now enumerated (excepting only the land-tax and annual malt-tax) are in the first place mortgaged, and made perpetual by parliament. Perpetual, I say; but still redeemable by the same authority that imposed them: which, if it at any time can pay off the capital, will abolish those taxes which are raised to discharge the interest.

By this means the quantity of property in the kingdom is greatly increased in idea, compared with former times; yet, if we coolly consider it, not at all increased in reality. We may boast of large fortunes, and quantities of money in the funds. But where does this money exist? It exists only in name, in paper, in public faith, in parliamentary security; and that is undoubtedly sufficient for the creditors of the public to rely on. But then what is the pledge which the public faith has pawned for the security of these debts? The land, the trade, and the personal industry of the subject; from which the money must arise that supplies the several taxes. In these, therefore, and these only, the property of the public creditors does really and intrinsically exist; and of course the land, the trade, and the personal industry of individuals, are diminished in their true value just so much as they are pledged to answer.
[Note: This is one of the earliest references to the Appearance of Reality that I’ve seen. It is this system that the U.S. was built on. A charade, existing only on paper; a national debt secured by labor and property pledged by a faithful public.]

United States v. Darnod, 1865

"You have heard some discussion as to the meaning of this term 'citizenship of the United States.' It has a plain, simple, everyday meaning, and that meaning you may safely take, without a definition, is that unequivocal relation between every American and his country which binds him to allegiance and pledges to him protection."

Black’s Law Dictionary, 2nd Edition, 1910
pledge blacks 2nd.JPG
pledge blacks 2nd.JPG (173.69 KiB) Viewed 5839 times
Black’s Law Dictionary, 5th Edition, 1979
Pledge. A bailment of goods to a creditor as security for some debt or engagement. A pledge, considered as a transaction, is a bailment or delivery of goods or property by way of security for a debt or engagement, or as a security for the performance of an act.

WEX Legal Dictionary
1. A promise.
2. A type of security interest in which a lender takes possession of personal property as security for an obligation. The personal property involved is also called a pledge. Initially, the lender's possessory interest is subject to the rules of a bailment or other type of deposit. If the borrower fails to perform as agreed, the lender may sell the personal property and keep the proceeds.
Miscellaneous FDR Quotes:

State of the Union Address, January 4, 1939
“That Hemisphere, that peace, and that ideal we propose to do our share in protecting against storms from any quarter. Our people and our resources are pledged to secure that protection. From that determination no American flinches.”
State of the Union Address, January 6, 1941
“Let us say to the democracies: ‘We Americans are vitally concerned in your defense of freedom. We are putting forth our energies, our resources and our organizing powers to give you the strength to regain and maintain a free world. We shall send you, in ever-increasing numbers, ships, planes, tanks, guns. This is our purpose and our pledge.’"
State of the Union Address, January 11, 1944
“And right here I want to address a word or two to some suspicious souls who are fearful that Mr. Hull or I have made "commitments" for the future which might pledge this Nation to secret treaties, or to enacting the role of Santa Claus.”
State of the Union Address, January 6, 1945
“I am in receipt of a joint letter from the Secretary of War and the Secretary of the Navy, dated January 3, 1945, which says:

‘With the experience of three years of war and after the most thorough consideration, we are convinced that it is now necessary to carry out the statement made by the Congress in the joint resolutions declaring that a state of war existed with Japan and Germany: That 'to bring the conflict to a successful conclusion, all of the resources of the country are hereby pledged by the Congress of the United States.'
4 U.S. Code § 4 - Pledge of allegiance to the flag; manner of delivery
The Pledge of Allegiance to the Flag: “I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all.”, should be rendered by standing at attention facing the flag with the right hand over the heart. When not in uniform men should remove any non-religious headdress with their right hand and hold it at the left shoulder, the hand being over the heart. Persons in uniform should remain silent, face the flag, and render the military salute. Members of the Armed Forces not in uniform and veterans may render the military salute in the manner provided for persons in uniform.
UCC § 1-201. General Definitions.
(29) "Purchase" means taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property.
4 U.S. Code § 110
(d) The term “State” includes any Territory or possession of the United States.
(e) The term “Federal area” means any lands or premises held or acquired by or for the use of the United States or any department, establishment, or agency, of the United States; and any Federal area, or any part thereof, which is located within the exterior boundaries of any State, shall be deemed to be a Federal area located within such State.
I'm including the above reference because "acquired" means "purchased" and purchased means "taking by pledge". Federal areas include (but are not limited to) the lands and premises pledged to the United States.

Miscellaneous Applicable Definitions from Bouvier's:
ACCESSORY CONTRACT. ONE MADE FOR assuring the performance of a prior contract, either by the same parties, or by others; such as suretyship, mortgages, and pledges.

ANTICHRESIS, contracts. A word used in the civil law to denote the contract by which a creditor acquires the right of reaping the fruit or other revenues of the immovables given to him in pledge, on condition of deducting, annually, their proceeds from the interest, if any is due to him, and afterwards from the principal of his debt. Louis. Code, art. 3143 Dict. de Juris. Antichrese, Mortgage; Code Civ. 2085. Dig. 13, 7, 7 ; 4, 24, 1 Code, 8, 28, 1.

BILL OF CREDIT. It is provided by the Constitution of the United States, art. 1, s. 10, that no state shall " emit bills of credit, or make anything but gold and silver coin a tender in payment or debts." Such bills of credit are declared to mean promissory notes or bills issued exclusively on the credit of the. state, and for the payment of which the faith of the state only is pledged. The prohibition, therefore, does not apply to the notes of a state bank, drawn on the credit of a particular fund set apart for the purpose. 2 M'Cord's R. 12; 2 Pet. R. 818; 11 Pet. R. 257. Bills of credit may be defined to be paper issued and intended to circulate through the community for its ordinary purposes, as money redeemable at a future day. 4 Pet. U. S. R. 410; 1 Kent, Com. 407 4 Dall. R. xxiii.; Story, Const. §§ 1362 to 1364 1 Scam. R. 87, 526.

DEAD PLEDGE. A mortgage of lands or goods mortuum vadium

PAWN. A pledge. Vide Pledge.

PIGNUS, civil law. This word signifies in English, pledge or pawn. (q. v.) It is derived, says Gaius, from pugnium, the fist, because what is delivered in pledge is delivered. in hand. Dig. 50, 16, 238, 2. This is one of several instances of the failure of the Roman jurists, when they attempted etymological explanation of words. The elements of pignus (pig) is contained in the word pa(n)g-o, and its cognate forms. Smith's Dict. Gr. and Rom. Antiq. h. v.

TO WAGE, contracts. To give a pledge or security for the performance of anything; as to wage or gage deliverance; to wage law, &c. Co. Litt. 294. This word is but little used..

Re: Pledge

Posted: Thu Dec 24, 2015 7:04 am
by notmartha
Butler D. Shaffer, Professor at Southwestern University School of Law, said:
"Because we fear the responsibility for our actions, we have allowed ourselves to develop the mentality of slaves. Contrary to the stirring sentiments of the Declaration of Independence, we now pledge "our Lives, our Fortunes and our sacred Honor" not to one another for our mutual protection, but to the state, whose actions continue to exploit, despoil, and destroy us."
David Spangler, on the Board of Directors of Planetary Citizens, United Nations, said:
"Lucifer comes to give us the final … Luciferic initiation … that many people now and in the days ahead, will be facing—for it is an initiation into the New Age. … No one will enter the New World Order unless he or she will make a pledge to worship Lucifer. No one will enter the New Age unless he will take a Luciferian initiation."

Re: Pledge and Hypothecate

Posted: Sun Jan 08, 2017 12:52 pm
by notmartha
Closely related to a pledge is "hypothecation", so I've included the meanings below for reference.

WEX Legal Dictionary
To pledge as security for a loan without giving up possession, as in the case of property the borrower pledges as collateral and keeps.

Bouvier's, 1856

1. This term is used principally in the civil law; it is defined to be a right which a creditor has over a thing belonging to another, and which consists in the power to cause it to be sold, in order to be paid his claim out of the proceeds.

2. There are two species of hypothecation, one called pledge, pignus, and, the other properly denominated hypothecation. Pledge is that species , of hypothecation which is contracted by the delivery of the debtor to the creditor, of the thing hypothecated. Hypothecation, properly so called, is that which is contracted without delivery of the thing hypothecated. 2 Bell's Com. 25, 5th ed.

3. Hypothecation is further divided into general and special when the debtor hypothecates to his creditor all his estate and property, which he has, or may have, the hypothecation is general; when the hypothecation is confined to a particular estate, it is special.

4. Hypothecations are also distinguished into conventional, legal, and tacit. 1. Conventional hypothecations are those which arise by the agreement of the parties. Dig. 20, 1, 5.

5. 2. Legal hypothecation is that which has not been agreed upon by any contract, express or implied; such as arises from the effect of judgments and executions.

6. 3. A tacit, which is also a legal hypothecation, is that which the law gives in certain cases, without the consent of the parties, to secure the creditor; such as, 1st. The lien which the public treasury has over the property of public debtors. Code, 8, 15, 1. 2d. The landlord has a lien on the goods in the house leased, for the payment of his rent. Dig. 20, 2, 2; Code, 8, 15, 7, 3d. The builder has a lien, for his bill, on the house he has built. Dig. 20, 1. 4th, The pupil has a lien on the property of the guardian for the balance of his account. Dig. 46, 6, 22; Code, 6, 37, 20. 5th. There is hypothecation of the goods of a testator for the security of a legacy he has given. Code, 6, 43, 1.

7. In the common law, cases of hypothecation, in the strict sense of the civil law, that is, of a pledge of a chattel, without possession by the pledgee, are scarcely to be found; cases of bottomry bonds and claims for seamen's wages, against ships are the nearest approach to it; but these are liens and privileges rather than hypothecations. Story, Bailm. §288. It seems that chattels not in existence, though they cannot be pledged, can be hypothecated, so that the lien will attach, as soon as the chattel has been prodced. 14 Pick. R. 497.

Vide, generally, Poth. de l'Hypothéque; Poth. Mar. Contr. translated by Cushing, note. 26, p. 145; Commercial Code of France, translated by Rodman, note 52, p. 351; Merl. Répertoire, mot Hypothéque, where the subject is fully considered; 2 Bro. Civ. Law, 195; Ayl. Pand. 524; 1 Law Tracts, 224; Dane's Ab. h. t.; Abbott on Ship. Index, h. t.; 13 Ves. 599; Bac. Ab. Merchant, &c. G; Civil Code of Louis. tit. 22, where this sort of security bears the name of mortgage. (q. v.)
hypothecation.JPG (90.91 KiB) Viewed 3525 times

The following quote is attributed to Colonel Edward Mandell House in a letter to Woodrow Wilson. Whether he said it or not, it is exactly what has happened:
“[Very] soon, every American will be required to register their biological property in a National system designed to keep track of the people and that will operate under the ancient system of pledging. By such methodology, we can compel people to submit to our agenda, which will affect our security as a chargeback for our fiat paper currency. Every American will be forced to register or suffer not being able to work and earn a living. They will be our chattel, and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions. Americans, by unknowingly or unwittingly delivering the bills of lading [Birth Certificate] to us will be rendered bankrupt and insolvent, forever to remain economic slaves through taxation, secured by their pledges. They will be stripped of their rights and given a commercial value designed to make us a profit and they will be none the wiser, for not one man in a million could ever figure our plans and, if by accident one or two would figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debt to the registrants in the form of benefits and privileges. This will inevitably reap to us huge profits beyond our wildest expectations and leave every American a contributor to this fraud which we will call “Social Insurance.” Without realizing it, every American will insure us for any loss we may incur and in this manner; every American will unknowingly be our servant, however begrudgingly. The people will become helpless and without any hope for their redemption and, we will employ the high office of the President of our dummy corporation to foment this plot against America.”