If you buy a car that has a debt or encumbrance attached, it can be repossessed by a financial institution and you lose both the car and your money. (Keys2Drive)

It is an extract of the register maintained by the sub-registrar, which in turn is based on the documents registered with the registrar. In case a particular document is not registered with the registrar, it won't be captured in the encumbrance certificate. (The Economic Times)

Depending on the legal structure of the settlement, the beneficiary may or may not use a structured settlement as collateral for a loan or another investment option. This is especially true if the payments are not taxable, since federal law prohibits the encumbrance of these tax-free benefits. (Investopedia)