‘Encumbrance’ means an obligation in the form of a purchase order, contract or salary commitment for which an estimated amount has been reserved and ceases to be an encumbrance when the actual liability is created.

Terms Used In Nevada Revised Statutes 353.3025

  • Contract: A legal written agreement that becomes binding when signed.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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