This article is largely based on an article in the out-of-copyright Encyclopædia Britannica Eleventh Edition, which was produced in 1911. It should be brought up to date to reflect subsequent history or scholarship (including the references, if any). When you have completed the review, replace this notice with a simple note on this article's talk page.(November 2015)
Defeasance (or defeazance) (French: défaire, to undo), in law, an instrument which defeats the force or operation of some other deed or estate; as distinguished from condition, that which in the same deed is called a condition is a defeasance in another deed.[1] The term is used in several contexts in finance, including:[2]
a clause in a mortgage granting a borrower exclusive ownership in a property after a debt is repaid,
a corporate finance technique where a corporate bond issue is repaid through an irrevocable trust, which allows the corporation to remove liabilities from its balance sheet; notably used by Exxon in 1982
A defeasance should recite the deed to be defeated and its date, and it must be made between the same parties as are interested in the deed to which it is collateral. It must be of a thing defensible, and all the conditions must be strictly carried out before the defeasance can be consummated. Defeasance in a bill of sale is the putting an end to the security by realizing the goods for the benefit of the mortgagee. It is not strictly a defeasance, because the stipulation is in the same deed; it is really a condition in the nature.
Referencesedit
^One or more of the preceding sentences incorporates text from a publication now in the public domain: Chisholm, Hugh, ed. (1911). "Defeasance". Encyclopædia Britannica. Vol. 7 (11th ed.). Cambridge University Press. p. 925.
defeasance, this, article, largely, based, article, copyright, encyclopædia, britannica, eleventh, edition, which, produced, 1911, should, brought, date, reflect, subsequent, history, scholarship, including, references, when, have, completed, review, replace, . This article is largely based on an article in the out of copyright Encyclopaedia Britannica Eleventh Edition which was produced in 1911 It should be brought up to date to reflect subsequent history or scholarship including the references if any When you have completed the review replace this notice with a simple note on this article s talk page November 2015 Defeasance or defeazance French defaire to undo in law an instrument which defeats the force or operation of some other deed or estate as distinguished from condition that which in the same deed is called a condition is a defeasance in another deed 1 The term is used in several contexts in finance including 2 a clause in a mortgage granting a borrower exclusive ownership in a property after a debt is repaid a corporate finance technique where a corporate bond issue is repaid through an irrevocable trust which allows the corporation to remove liabilities from its balance sheet notably used by Exxon in 1982 A defeasance should recite the deed to be defeated and its date and it must be made between the same parties as are interested in the deed to which it is collateral It must be of a thing defensible and all the conditions must be strictly carried out before the defeasance can be consummated Defeasance in a bill of sale is the putting an end to the security by realizing the goods for the benefit of the mortgagee It is not strictly a defeasance because the stipulation is in the same deed it is really a condition in the nature References edit nbsp One or more of the preceding sentences incorporates text from a publication now in the public domain Chisholm Hugh ed 1911 Defeasance Encyclopaedia Britannica Vol 7 11th ed Cambridge University Press p 925 defeasance AllBusiness com nbsp This legal term article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Defeasance amp oldid 908272183, wikipedia, wiki, book, books, library,
