defeasance investment & finance definition
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The ability of a debtor to offset a liability by purchasing government securities or a specialized risk management contract.
Definition
Defeasance clause
The clause in a mortgage agreement that gives the borrower the right to redeem title to the property upon payment to the lender of the complete debt obligation.
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Legal defeasance
Definition:
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. ...
DEFEASANCE or DEFEASED - Termination of the rights and interests of the bondholders and of their lien on the pledged revenues or other security in accordance with the terms of the bond contract for an issue of securities.
Defeasance
A provision that voids a bond or loan when the borrower sets aside cash or bonds sufficient enough to service the borrower's debt.
Also referred to as "defease." ...
Defeasance
The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet.
defeasance
Termination of the rights and interests of the trustee and bondholders under a trust agreement or indenture upon final payment or provision for payment of all debt service and premiums, and other costs, ...
Defeasance: Annulment of trust indenture conditions granting new bonds a claim on revenues, and the old bonds a claim on the escrow account containing the proceeds (the money) from the pre-refunding issue.
Defeasance: (See Advanced Refunding)
Deflation: Deflation occurs when there is a drop in the price of goods and services. It is the opposite of inflation.
[edit] Defeasance
Defeasance is the substitution of collateral. Defeasance is used to calculate the cost of paying a commercial mortgage before the maturity date.
defeasance A provision in an instrument that nullifies it when certain events occur. defendant The person who is charged and under trial in a legal action.
of the arbitrage regulations requires that an issuer retain certain records necessary to qualify for the safe harbor for establishing fair market value for guaranteed investment contracts and investments purchased for a yield restricted defeasance ...
 See also: Debt, Bonds, Issue, Interest, Securities
  
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