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hypothecation

Hypothecation

1) Means to pledge, usually money. In the transport context, it is the process whereby money secured from investment in transport measures (eg car parking fees, road charging/tolling, etc) is reinvested into the network, ideally to benefit public transport and other sustainable transport modes.

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Letter of hypothecation

1) Bank document outlining conditions under which international transactions will be executed on behalf of an exporter who has made specified pledges to the bank.

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