Definition Of Unencumbered Balance

If company xyz is willing to pledge 100 million of its assets to the bondholders that is let the.

Definition of unencumbered balance. The concept is employed in governmental accounting. 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. Unencumbered definition not impeded slowed down or retarded. How does unencumbered work.

Although the definition of transferred assets 2 and the required 2 transferred assets whether or not the transfer has resultedin their derecognition from the balance sheet of the transferor are assets for which the contractual rights to receive cash flows have been transferred even if the assets. Unencumbered refers to an asset or property that is free and clear of any encumbrances such as creditor claims or liens. Unencumbered balance dictionary of accounting terms for. An unencumbered asset is much easier to sell or transfer than one with an.

Free to move advance or go forward. And not to encumbered assets. Related courses governmental accounting the yellow. Unencumbered balance in government accounting balance relating to a portion or the entire amount of an appropriation that has not been encumbered or expended.

Thus it is the amount of money remaining that is available for use. Unencumbered balance sheet cash means as of any date of determination the balance of unencumbered balance sheet cash of the obligors on such date excluding a any vault cash or cash for use in atm equipment and b any cash equal to the value of the outstanding convertible senior notes prior to maturity thereof. Unencumbered balance redirected from unencumbered balances in government accounting an amount appropriated for a project or department that has not been spent and has not been earmarked for a specific task. Unencumbered is a property that has no legal claim attached and therefore can be freely transferred to a third party.

The ratings of the senior unsecured debt and medium term notes are sensitive to changes in boc aviation s idr and the level of unencumbered balance sheet assets available in a stressed scenario relative to outstanding unsecured debt. To understand what unencumbered means it s important to understand how encumbrances work.