Recent Examples of unencumbered from the Web
At some point soon, Clippers coach Doc Rivers and his staff anticipate this team will be unencumbered from the injuries that have wrecked them during training camp.
Canada coached his offense unencumbered by Orgeron, as evidenced by the immediate return of frequent pre-snap shifts and motions that the coordinator likes to call with his plays.
Both encounter the world unencumbered by the conventions that society expects.
Or even wandering around the living room in a VR headset, unencumbered by a tether to some giant PC.
Obviously some of that is because this is a concept car, unencumbered by things like safety regulations, which might frown at that caged interior or the blade-like side mirrors.
The president, Sergio Mattarella, might ask a respected figure, unencumbered by party allegiances, to form a government of ‘technocrats’ (Cynics note that Mr Grasso would fit the bill nicely).
Allen can get some unencumbered time in the pocket against a weaker-than-SEC opponent.
Toyota driver is still searching for a lot: his first playoff victory, his first playoff stage win and his first unencumbered win since July.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'unencumbered.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of unencumbered
Financial Definition of UNENCUMBERED
What It Is
An encumbrance is a limitation on the ownership of a property. When an asset is unencumbered, there are no limitations on its ownership.
How It Works
To understand what unencumbered means, it's important to understand how encumbrances work. 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. If 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, then 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 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. Unencumbered assets can therefore help reduce the risk of debt if they become encumbered.
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, which do not have encumbered assets attached, 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.
Seen and Heard
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