Encumbrance
Encyclopedia
Encumbrance is legal technical terminology
for anything that affects or limits the title
of a property, such as mortgages, leases
, easement
s, lien
s, or restrictions. Also, those considered as potentially making the title defeasible are encumbrances. For example, charging order
s, building orders and structure
alteration.
s and universities to describe limitations placed on a student
's account due to late payment, late registration, or other reasons stated by the institution. An encumbrance can prohibit students from registering for classes
, affect the release of their transcripts, or delay the reception of their diploma
s.
, encumbrance is a management tool used to reflect commitments in the accounting system and attempt to prevent overspending. Encumbrances allow organizations to recognize future commitments of resources prior to an actual expenditure.
Pre-encumbrance: Amount expected to spend, but for which there is no legal obligation to spend. A requisition is a typical pre-encumbrance transaction.
Encumbrance: Amount for which there is a legal obligation to spend in the future. A purchase order is a typical encumbrance transaction.
Expenditure: Amount for which there has been an expenditure of funds. An expenditure is recorded in Commitment Control for both vouchers payable and journal entries.
Technical terminology
Technical terminology is the specialized vocabulary of any field, not just technical fields. The same is true of the synonyms technical terms, terms of art, shop talk and words of art, which do not necessarily refer to technology or art...
for anything that affects or limits the title
Title (property)
Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership...
of a property, such as mortgages, leases
Leasing
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....
, easement
Easement
An easement is a certain right to use the real property of another without possessing it.Easements are helpful for providing pathways across two or more pieces of property or allowing an individual to fish in a privately owned pond...
s, lien
Lien
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation...
s, or restrictions. Also, those considered as potentially making the title defeasible are encumbrances. For example, charging order
Charging order
A charging order, in English law, is an order obtained from a court or judge by a judgment creditor, by which the property of the judgment debtor in any stocks or funds or land stands charged with the payment of the amount for which judgment shall have been recovered, with interest and...
s, building orders and structure
Structure
Structure is a fundamental, tangible or intangible notion referring to the recognition, observation, nature, and permanence of patterns and relationships of entities. This notion may itself be an object, such as a built structure, or an attribute, such as the structure of society...
alteration.
Hong Kong
In Hong Kong, there is statutory definition of "encumbrance". In Conveyancing and Property Ordiance (Cap. 219) it reads: ""encumbrance" (產權負擔) includes a legal and equitable mortgage, a trust for securing money, a lien, a charge of a portion, annuity, or other capital or annual sum;and "encumbrancer" (產權負擔人) has a meaning corresponding with that of "encumbrance" and includes every person entitled to the benefit of an encumbrance, or to require payment or discharge thereof".Colleges
It is also a term used by collegeCollege
A college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...
s and universities to describe limitations placed on a student
Student
A student is a learner, or someone who attends an educational institution. In some nations, the English term is reserved for those who attend university, while a schoolchild under the age of eighteen is called a pupil in English...
's account due to late payment, late registration, or other reasons stated by the institution. An encumbrance can prohibit students from registering for classes
Class (education)
A class in education has a variety of related meanings.It can be the group of students which attends a specific course or lesson at a university, school or other educational institution, see Form ....
, affect the release of their transcripts, or delay the reception of their diploma
Diploma
A diploma is a certificate or deed issued by an educational institution, such as a university, that testifies that the recipient has successfully completed a particular course of study or confers an academic degree. In countries such as the United Kingdom and Australia, the word diploma refers to...
s.
Accounting
In management accountingManagement accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...
, encumbrance is a management tool used to reflect commitments in the accounting system and attempt to prevent overspending. Encumbrances allow organizations to recognize future commitments of resources prior to an actual expenditure.
Pre-encumbrance: Amount expected to spend, but for which there is no legal obligation to spend. A requisition is a typical pre-encumbrance transaction.
Encumbrance: Amount for which there is a legal obligation to spend in the future. A purchase order is a typical encumbrance transaction.
Expenditure: Amount for which there has been an expenditure of funds. An expenditure is recorded in Commitment Control for both vouchers payable and journal entries.