‘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.

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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.