Difference between revisions of "Encumbrance"

From Open Risk Manual
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[[Category:Supply Chain Finance]]
 
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[[Category:Credit Risk]]

Latest revision as of 13:45, 13 February 2020

Definition

Encumbrance. It is a claim against a property held by another party. An encumbrance can take several forms: mortgages, claims by other parties, court judgments, pending legal action, unpaid taxes, restrictive deed or loan covenants, easement rights of the neighbors, or zoning ordinances. An encumbrance normally impacts the transferability of the property.

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