Defeasance

Business / Finance / Defeasance: The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).

Legal Defeasance

Business / Finance / Legal Defeasance: The deposit of cash and permitted securities, as specified in the bond indenture, into an irrevocable trust sufficient to enable the issuer to fully discharge its obligations under the bond indenture. MORE

In-Substance Defeasance

Business / Finance / In-Substance Defeasance: Financial securities, such as money market instruments or capital market instruments. MORE

Defeasance Clause

Business / Real Estate / Defeasance Clause: A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan. MORE

Novation

Business / Finance / Novation: Defeasance whereby the firm's debt is cancelled. MORE

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