defeasance


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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 ?
CMBS investors generally prefer borrowers to enter into defeasance transactions.
KBRA observed that both defeasance and supplemental debt accelerated in recent years as rent and property values climbed.
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.
In-substance defeasance occurs when a firm irrevocably deposits cash or other assets Into a trust for the sole purpose of making principal and interest payments on debt as the payments become due.
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.
Defeasance occurs when a borrower substitutes new collateral in the form of Treasury securities to pay off a loan currently locked out from prepayment.
Defease With Ease[R], headquartered in Charlotte, North Carolina, recently facilitated a $160 million defeasance transaction for Hometown America Corporation in connection with the sale of ten properties located in Texas, Arizona and Colorado.
Defeasance is a substitution of collateral in which a portfolio of government securities replaces the real estate as the collateral for a commercial loan.
Capmark also assisted the borrower with the defeasance by structuring a custom debt security through Fannie Mae that saved the borrower over $300,000 on the cost of the defeasance," said Crimmins.
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.
While the conclusion may seem intuitive, our report quantifies and demonstrates the relationships [among] changes in property value, delinquency and defeasance.