Encumbered: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Create the page. Sources: linked pages.)
(No difference)

Revision as of 21:48, 29 October 2016

An asset is said to be 'encumbered' when it is subject to a right enjoyed by someone other than the owner of the asset.


For the purposes of bank liquidity liquidity regulation, an asset may be considered encumbered if:

  • It has been pledged; or
  • It is subject to any arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn.


See also