In the case of an asset, the owner – in older documents also the possessor – has full legal dominion (the asset is clear of any legal encumbrances as pledge and other forms of priority rights from third parties). A corresponding declaration, usually on a form, is usually required by banks before they accept an asset as collateral for a loan. – See encumbrance, commingling risk.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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