Re-hypothecation – this term finds application in the area of Banking Law, where details establishing of new, secondary mortgage on a real estate, with the role to secure new loan, obtained by the property owner. Banks calculate carefully the risks before they issue new mortgage loan connected with re-hypothecation. They need to be sure that in case of non-payment by the debtor, where the property gets sold by the bailiff, its sale price must be enough to cover repayment of both established hypothecs.

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