Legal Definitions - hypothecary action

Definition: A type of legal action that involves a creditor's claim against a debtor's property as security for a debt.

Example: If a person takes out a mortgage to buy a house, the lender may have a hypothecary action against the property if the borrower fails to make payments on the loan. This means that the lender can take legal action to seize the property and sell it to recover the debt owed.

Explanation: A hypothecary action is a legal tool that allows a creditor to secure a debt against a debtor's property. This type of action is commonly used in mortgage agreements, where the lender has a claim against the property as security for the loan. If the borrower defaults on the loan, the lender can use the hypothecary action to take legal action to recover the debt owed. This may involve seizing and selling the property to pay off the debt.