Definitions for "defeasance"
A defeat; an overthrow.
A rendering null or void.
A condition, relating to a deed, which being performed, the deed is defeated or rendered void; or a collateral deed, made at the same time with a feoffment, or other conveyance, containing conditions, on the performance of which the estate then created may be defeated.
Practice whereby the borrower sets aside cash or bonds sufficient to service the borrower's debt. Both the borrower's debt and the offestting cash or bonds are removed from the balance sheet.
A financing technique used by large companies to borrow money without showing it on their balance sheets. The funds borrowed by the company are used to buy government securities and the income from such securities is used to meet the servicing costs of borrowing. Both the initial borrowing and the securities purchased with it are then tied up in a trust external to the company’s balance sheets. Français: Defeasance Español: Anulación, revocación
Fannie Mae's Defeasance option gives the borrower a choice in lieu of yield maintenance when a property is released from the mortgage lien prior to maturity. The property release does not interrupt the original expected cash flow to investors in securities backed by mortgages. Defeasance reduces the risk of reinvesting prepayment proceeds in an uncertain interest rate environment.
A provision in an instrument that nullifies it if specified acts are performed.
A clause included in some insurance policies that provides that performance of certain specified acts will nullify the contract agreement.
Annulment of a contract or deed; a clause within a contract or deed that provides for annulment.
is an accounting term meaning extinguishment of debt by setting aside sufficient assets/investments in an irrevocable trust to satisfy future interest payments and principal repayment.
See Advanced Refunding.
Satisfaction of Refunded Debt for accounting purposes without the debt being legally retired.
A provision in a mortgage which allows the debtor to reclaim property that has been foreclosed, if certain conditions are met.
Keywords:  defendant