explain with example " unencumbered approved securities" ?
Dear Student,
In order to understand the meaning of unencumbered approved securities, you need to know what unencumbered and approved means in context of securities. Approved securities means securities issued by or belonging to the central or the state government of which both principal and interest payments are guaranteed by the respective governments. And unencumbered securities are those types of securities that are free from any charge or lien on them even if held by someone else. Accordingly, the derived meaning of unencumbered approved securities are securities belonging to someone lodged with someone else against some advance or any such arrangement to the extent to which such securities have not been drawn against or availed of or encumbered in any manner.
In order to understand the meaning of unencumbered approved securities, you need to know what unencumbered and approved means in context of securities. Approved securities means securities issued by or belonging to the central or the state government of which both principal and interest payments are guaranteed by the respective governments. And unencumbered securities are those types of securities that are free from any charge or lien on them even if held by someone else. Accordingly, the derived meaning of unencumbered approved securities are securities belonging to someone lodged with someone else against some advance or any such arrangement to the extent to which such securities have not been drawn against or availed of or encumbered in any manner.