Define: Encumbrance

How is Encumbrance defined in a legal contract?

• Encumbrance means any type of claim, pledge, condition, lien, option, mortgage, right of refusal, or any other kind of restriction, including those that limit use, voting, transfer of ownership, or the exercise of any other attributes of ownership. Seen in 2000 SEC filings.
• Encumbrance means any restriction that encumbers voting, transferring securities or assets, income receipt from assets, usage of the asset and possession, exercise or transfer of any other attribute of ownership. Seen in 1000 SEC filings.
• Encumbrance means any kind of charge, pledge, mortgage, lien, hypothecation, or restriction of any sort. Seen in 398 SEC filings.
• Encumbrance means any form of a mortgage, charge, pledge, assignment, or lien, including easements, exceptions, reservations, or any third-party right or other arrangement or condition that effectively secures the payment or performance of an obligation. Seen in 341 SEC filings.
• Encumbrance means any claim, lien, pledge, charge, easement, or restriction, including future agreements for these, and any contingent sale agreement or other title retention nature. Seen in 337 SEC filings.
• Encumbrance means any form of encumbrance that affects security or other obligations, including physical encumbrances, claims for due amounts, easements on project sites or facilities. Seen in 326 SEC filings.
• Encumbrance means any mortgage, charge, pledge, lien, option, restriction, equity, or right to acquire, along with other encumbrances or security interests that offer preferential arrangements or similar effects. Seen in 322 SEC filings.
• Encumbrance means any lien, pledge, charge, mortgage, equity, trust, or claim, including any restriction that affects the transfer of any asset, any income received from any asset, any usage of the asset and possession, exercise or transfer of any attribute of the asset's ownership. Seen in 279 SEC filings.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of encumbrance' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Encumbrance means any restriction, claim, lien or pledge affecting an asset's ownership, use, or value.

Relevant Contract Types

• Property Purchase Agreement
• Merger Agreement
• Loan Agreement
• Manufacturing and Supply Agreement
• Franchise Agreement

Relevant Circumstances

• Purchase or sale of real estate or property
• Securing a loan or debt
• Merging or acquiring businesses

Relevant Sectors

• Real Estate
• Banking & Financial Services
• Energy
• Manufacturing

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Genie Definition 2

• Encumbrance means any charge, mortgage, or security interest securing payment or performance of an obligation.

Relevant Contract Types

• Securities Purchase Agreement
• Shareholder Agreement
• Mortgage Agreement

Relevant Circumstances

• Purchase or sale of securities
• Establishing shareholder rights and obligations
• Mortgaging of property for securing loan

Relevant Sectors

• Real Estate
• Banking & Financial Services
• Commercial & Corporate Law

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