n. an antiquated word for a document which terminates the effect ...

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. In s [..]

The degree of risk inherent in a bond to which bondholders are subject. An issue that is fully "defeased" means that both bond principal and bond interest are at risk of loss in th [..]

early 15c., from Anglo-French defesaunce, Old French desfaisance "undoing, destruction," from desfaire (Modern French défaire) "to undo, destroy" (see defeat (v.)). Related: Defeas [..]

The act of rendering something null and void, or a clause in a deed, lease, will, or other legal document that completely or partially negates the document if a certain condition occurs or fails to oc [..]

Definition A provision in an instrument that nullifies it if specified acts are performed.

[Anglo-French defesance, literally, undoing, destruction, from Old French deffesant, present participle of deffaire to destroy, undo see defeat ] 1 a : a condition (as in a deed or will) that upon ...

Annulment of a contract or deed; a clause within a contract or deed that provides for annulment.

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, as specifically provided for in the trust instrument.

provision that voids a loan when the borrower sets aside cash or bonds sufficient enough to service the debt.

A form of prepayment penalty for which the borrower is required to purchase and deposit with the lender substitute collateral, such as a Treasury security that matches the principal and interest payme [..]

The prepayment of financial obligations, often through a third party, in circumstances where the third party assumes the responsibility to discharge the financial obligations. When it occurs, th [..]

Defeasance is a provision in an instrument, such as leases and loans, that makes certain conditions void if specified actions are taken. For example, when a borrower sets aside enough cash to pay off [..]

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 su [..]

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 cost [..]

n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond or contract if some event occurs.

Process of rendering a contract or deed null and void following a specified act.

(now,_|rare) Destruction, defeat, overthrow. * '''1590''', Edmund Spenser, ''The Faerie Queene'', I.xii: *: that hoarie king, with all his traine, / Being arriued, where that champion stout / Afte [..]

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. In s [..]