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

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.

Collins Dictionary of Law © W.J. Stewart, 2006

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.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.

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References in periodicals archive ?

GFOA's primary objective for this 116th Congress has focused on infrastructure, to fully reinstate state and local government's authority to issue tax-exempt advance refunding bonds.

2019 Bond Modernization

They introduced advance refundings in 1960 in an attempt to reverse the steady decline in average maturity.

The emergence of "regular and predictable" as a treasury debt management strategy

Advance Refunding.--An advance refunding occurs when new bonds are issued prior to the date on which an outstanding issue of bonds can be redeemed (called).

Tax-Exempt Governmental Bonds, 1991-1995

Market participants will likely recommend previously utilized tools or develop new tools or mechanisms to simulate the beneficial impacts of tax-exempt advance refundings. Issuers should be particularly mindful of the unique risks and uncertainties associated with these options and discuss these options with their municipal advisors and legal counsel.

POTENTIAL IMPACTS OF TAX REFORM ON OUTSTANDING AND FUTURE MUNICIPAL DEBT ISSUANCE

6 Understand advance refundings. When interest rates are low, many elected officials are asked to approve the issuance of advance refunding bonds to refinance the city's outstanding bonds.

Municipal bonds: 10 things every elected official should know

Eliminate advance refunding of governmental and 501(c)(3) bonds.

Protecting tax-exempt bonds and tax incentives: a recent appeals court decision and the ongoing debate over tax reform at the federal level have raised serious concerns in the public finance community about the future of tax incentives and tax-exempt bonds

But unlike families and businesses, communities are limited both by the enormous transaction costs and by the limitation on advance refunding enacted in 1986.

In focus: 'let cities play by the same rules.'

Allow an additional advance refunding. Since 1986, governments have been permitted to advance refund tax-exempt bonds once over the lifetime of the debt.

Lobbying for flexibility in tax-exempt financing: GFOA and the Public Finance Network are working to introduce a bill in Congress that will ease some of the restrictions on the use of tax-exempt municipal bonds

Troubled by reports that issuers are earning excessive arbitrage by not converting advance refunding escrows into zero-interest securities, the Internal Revenue Service is preparing to launch a random examination to determine the extent of the problem.

IRS to Examine Advance Refundings for Arbitrage Compliance

However, a second approach would be to buy down previously refunded debt which could otherwise not be refunded due to Treasury prohibitions regarding a second advance refunding.