defeasance


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Related to defeasance: Legal defeasance, In Substance Defeasance

defeasance

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.

defeasance

noun abolishment, abolition, annulment, breakup, canceling, cancellation, cessation, close, conclusion, deprivation, disallowance, discharge, discontinuance, disendowment, disestablishment, dissolution, end, end of the matter, ending, expiration, finish, invalidation, limit, negation, nullification, ousting, recall, removal, repeal, rescindment, rescission, retractation, retraction, reversion, revocation, revokement, stoppage, suppression, undoing, vacation, voidance, windup, withdrawal
Associated concepts: condition, defeasance clause, defeaaance of contract, defeasance of title, defeasible estate
See also: abolition, annulment, countermand, discharge, discontinuance, dissolution, repudiation, rescision, revocation, termination

defeasance

the act or process of rendering null and void; annulment. May also refer to a condition, the fulfilment of which renders a deed void or the document containing such a condition. See more especially VESTING.

DEFEASANCE, contracts, conveyancing. An instrument which defeats the force or operation of some other deed or estate. That, which in the same deed is called a condition, in another deed is a defeasance.
     2. Every defeasance must contain proper words, as that the thing shall be void. 2 Salk. 575 Willes, 108; and vide Carth. 64. A defeasance must be made in eodem modo, and by, matter as high as the thing to be defeated; so that if one be by deed) the other must also be by deed. Touchs. 397.
     3. It is a general rule, that the defeasance shall be a part, of the same transaction with the conveyance; though the defeasance may be dated after the deed. 12 Mass. R. 13 Pie P. 413 1 N. 11. Rep. 41; but see 4 Yerg. 57, contra. Vide Bouv. Inst. Index, h.t.; Vin. Ab. h.t.; Com. Dig. h.t.; Id. Pleader, 2 W 35, 2 W 37; Lilly's Reg. h.t.; Nels. Ab. h.t.; 2 Saund. 47 n, note 1; Cruise, Dig. tit. 32, c. 7,, s. 25; 18 John. R. 45; 9 Wend. R. 538; 2 Mass. R. 493.

References in periodicals archive ?
Defeasance occurs when a borrower substitutes new collateral in the form of Treasury securities to pay off a loan currently locked out from prepayment.
About AST Defeasance: AST Defeasance is an industry leader in the defeasance of commercial real estate loans.
Today's historically low interest rate market results in extremely low yields on Treasury obligations, and- unfortunately for owners of property subject to conduit loans-also results in an increase in the cost of defeasance due to the increased amount of Treasuries necessary to cover the loan payment obligations.
Defease With Ease was able to structure the $66 million securities portfolio for the defeasance to the 3-month open prepayment date rather than the maturity date and found language in the loan documents that allowed the securities portfolio to include higher yielding agency debt.
It is important for borrowers to consider their defeasance terms at origination in order to position themselves for an agreeable result in the event that they need to defease in the future," said Jodi Eppler, director of defeasance services at Chatham Financial.
Our goal is to simplify the defeasance, so buyers and sellers are able to concentrate on their purchase and sale transactions with complete confidence that the defeasance will close on time.
Jon Davis, Deal Manager at Commercial Defeasance, said, "Repeat business from satisfied customers is the cornerstone of our success.
Defeasance is a substitution of collateral in which a portfolio of government securities replaces the real estate as the collateral for a commercial loan.
While the conclusion may seem intuitive, our report quantifies and demonstrates the relationships [among] changes in property value, delinquency and defeasance.
Dawn Holland, a Deal Manager with Commercial Defeasance stated, "Ending 2010 with a defeasance of this magnitude should certainly give all of us an optimistic outlook for the continued recovery of the commercial real estate market in 2011.
A defeasance usually takes 30-45 days to complete, but this transaction was completed in just five days including rating agency review.
Most of these new transactions will depend on the defeasance of their existing loan," said Levine.