👉 Encumbrancer is a legal term in accounting and finance, referring to an asset or liability that serves as a guarantee of payment for another entity. It is typically used to describe a contract where one party promises to pay money to another party based on a specific event or condition. The encumbrancer can be anything from a physical asset like a building or land, to a liability like a loan or debt obligation, and can also include other types of financial instruments such as securities or other contracts
