What is "hypothecating"

Hypothecate \Hy*poth"e*cate\, v. t. [imp. & p. p. Hypothecated; p. pr. & vb. n. Hypothecating.] [LL. hypothecatus, p. p. of hypothecare to pledge, fr. L. hypotheca pledge, security. See Hypotheca.] (Law) To subject, as property, to liability for a debt or engagement without delivery of possession or transfer of title; to pledge without delivery of possession; to mortgage, as ships, or other personal property; to make a contract by bottomry. See Hypothecation, Bottomry.

He had found the treasury empty and the pay of the navy in arrear. He had no power to hypothecate any part of the public revenue. Those who lent him money lent it on no security but his bare word.
--Macaulay.

vb. (present participle of hypothecate English)