Encumbered: Difference between revisions

Revision as of 21:50, 29 October 2016

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

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-An asset is said to be 'encumbered' when it is subject to a right enjoyed by someone other than the owner of the asset.
+An asset is said to be 'encumbered' when it is subject to a right - known as an encumbrance - 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is subject to any arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn.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==
-*[[Collateral]]
 *[[Encumbrance]]
 *[[Unencumbered]]