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1. In accounting, an amount of money that one is required to spend on a stated thing in the future. For example, a portion of the proceeds of a sale may be encumbered to pay for the cost of goods sold.

2. In real estate, any claim of ownership that may cloud the legitimacy of a sale. See also: Bad title.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


1. A liability on real property. For example, a mortgage encumbers title to real estate because the lender has an interest in the property. Compare unencumbered.
2. A commitment within an organization to use funds for a specific purpose. Thus, a college may encumber funds for later payment to cover expenses associated with a faculty member's trip to recruit new professors.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The gravamen of the crime is the disposition of legally encumbered real property by the offender under the express representation that there is no encumbrance thereon.
Fitch expects the volume of problem assets will continue to decline at a reasonable pace in the medium-term saying this will be positive for BoC`s credit risk profile and key to reducing the bank`s very high capital encumbrance from unreserved problem assets.
Any restriction regarding acquisitions, encumbrances, conveyances, transfers or dispositions imposed on agricultural free patents issued under Section 44 of Commonwealth Act 141, as amended, before the effectivity of RA 11231 are lifted.
com, says, " For this, check encumbrance certificate for, at least, 30 years.
The PRA's approach is permitted under the European Banking Authority's guidelines for encumbrance disclosure which specifically envisages an exemption for liquidity assistance provided by central banks via collateral swaps.
Colley says she has been struck by how many Scots feel 'colonised' by the English and/or by London and that independence campaigners use it as a way of arguing Britishness is no longer a useful vehicle and it's actually an encumbrance and an oppression.
More and more areas and buildings in the city centre are unceremoniously gobbled up for student use at the exclusion of permanent citizens who have to pay for the encumbrance of the city becoming the university campus.
for been watching drug culture decades to earned the of drug deaths I think it would then become as normal as it wearing a collar and not be any encumbrance at all.
MAY I give my opinion of my lack of surprise at the broken manifesto promises of the Tory party threatening to take away the winter fuel payment, OAP bus passes and treating the disabled and OAP like an encumbrance and nuisance on society.
said that Armavia cannot return the jet as it is under encumbrance by one of the Armenian banks.
The encumbrance of a Father Christmas outfit did not prevent Liverpool's Adam Peers from smashing the record for the Jubilee Plunge from the summit of Moel Famau to Llangynhafal.
That would reduce the portion of Ford Credit's assets used as ABS collateral--its asset encumbrance ratio--which is a key factor for rating agencies, thus bolstering its chances for an upgrade.