Encumbered asset definition

Encumbered asset. – means an asset that is pledged to secure a loan, advance or other debt obligation such that the asset is no longer available to support liabilities to depositors and creditors. For purposes of capital calculations under this regulation, the amount to be deducted is the lesser of (i) the book value of the asset pledged or (ii) the outstanding balance of the loan secured by such asset.
Encumbered asset means an asset of the Borrower (other than assets related to software) having a fair market value not in excess of $1,750,000 which is subject to a purchase money security interest in favor of another lender.
Encumbered asset means, at any time, any asset of the Borrower or any Restricted Subsidiary, other than an RC Asset, that satisfies each of the following requirements at such time: (a) such asset shall be of a class set forth as an “Eligible Asset Classon Schedule 1.01(c), (b) such asset shall be owned exclusively by the Borrower or any Restricted Subsidiary, (c) such asset shall be free and clear of all Liens (other than Permitted Liens) and (d) such asset shall be denominated in US dollars and any real property securing such asset shall be located in the United States.

Examples of Encumbered asset in a sentence

  • Encumbered asset is an asset which has been pledged as collateral against an existing liability and as a result is no longer available to the Group for further collateral or liquidity requirements.

  • Encumbered asset summary2021£’0002020£’000Encumbered cash and cash equivalents46,41932,136Unencumbered cash and cash equivalents105,16292,167Cash and cash equivalents151,581124,303 An asset is defined as encumbered if it has been pledged as collateral against an existing on or off-balance sheet liability, and as a result is no longer available to the Group to secure funding, satisfy collateral needs or be sold to reduce the funding requirement.


More Definitions of Encumbered asset

Encumbered asset means tangible or intangible movable property that is subject to a security right;
Encumbered asset means a tangible or intangible movable asset that is subject to a security right. The term includes a receivable that is the subject of an outright transfer;
Encumbered asset shall have the meaning assigned to that term in Section 9.12(vii) hereof.
Encumbered asset means a tangible or intangible asset that is subject to a security right. The term also includes a receivable that has been the subject of an outright transfer;8
Encumbered asset means an asset of the credit union which is subject to a legal claim of another party;
Encumbered asset means[: (i)] a movable asset that is subject to a security right; [and (ii) a receivable that is the subject of an outright transfer;]
Encumbered asset means property that is subject to a security right. The property may be tangible or intangible. Each of these two general types of property includes various categories, some of which fall within particular defined terms used in the Guide.