Examples of encumbrance in a Sentence
without the encumbrance of a heavy backpack, I could sprint along the trail
Recent Examples of encumbrance from the Web
For a quarter-century, your humble Observer's gaze has peered through ice, rain, steam, sweat and most other encumbrances, but even he was staggered by the downpours challenging this year's party.
The agreement temporarily helps Sears with its goal to get its products into the hands of consumers without the encumbrance of expensive real estate holdings.
What was the overwhelming encumbrance of that area?
The pleasure of seeing them together onscreen, and the intermittent spark of comedic energy that passes between them, doesn’t outweigh the overwhelming encumbrances of the script and, above all, of the direction.
Wong often proceeds by indirection, and the obvious contrast of this first meeting — between Big Labor’s encumbrances and Roosevelt’s dexterity — made, in retrospect, a deliberate point.
Martin Weston, the national junior coach manager for British tennis, isn’t surprised by the shot’s dwindling presence, partly due to the shot’s encumbrance.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'encumbrance.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of encumbrance
balk, bar, block, chain, clog, cramp, crimp, deterrent, drag, embarrassment, fetter, handicap, hindrance, holdback, hurdle, impediment, inhibition, interference, manacle, obstacle, obstruction, shackles, stop, stumbling block, trammel;
Financial Definition of ENCUMBRANCE
What It Is
An encumbrance is a limitation on the ownership of a property.
How It Works
In the real estate world, an encumbrance is similar to a lien. The bond world also includes encumbrances. For instance, let's consider a $100 million bond issue by Company XYZ. Let's say that Company XYZ is willing to pledge $100 million of its assets to the bondholders (that is, let the bondholders place liens on specific assets that they may seize in the event of default), giving them a little extra assurance that they will be paid on time. In that case, the bonds would be considered securitized or asset-backed because the assets have $100 million of encumbrances on them.
Why It Matters
Encumbrances provide security to lenders and bond investors in the case of bankruptcy or default. For example, it is important to note that debentures (bonds backed by the full faith and credit of the issuer) do not have encumbrances. That is, they are not secured by specific pieces of property or collateral and they do have a general claim on the assets and earnings of the issuer. Therefore, if the issuer were to liquidate, the holders of the debenture bonds have a claim on any assets not specifically pledged to secure other debt.
Companies that are extremely creditworthy often have no reason to encumber specific assets in order to sell a bond issue because they'll still pay relatively low interest rates. (This is why debentures can sometimes sell for more than bonds with encumbrances from less creditworthy issuers.) Sometimes issuers also want to leave their assets unencumbered in order to make future financings possible.
legal Definition of encumbrance
- that these premises are free from all encumbrances
Seen and Heard
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