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 ?
The new ED also proposes to address a disclosure issue that can affect either type of in-substance defeasance. To initially qualify as in-substance defeasance, the monetary assets placed in trust must be essentially risk free.
KBRA observed that both defeasance and supplemental debt accelerated in recent years as rent and property values climbed.
CMBS investors generally prefer borrowers to enter into defeasance transactions.
Companies considering this option, however, should be aware that the income statement and balance sheet benefits of in-substance defeasance may be offset by adverse effects on cash flow.
The Stable Outlooks on classes A-3 through E reflect the generally stable performance of the pool since issuance as well as the increased credit enhancement due to paydown and defeasance. Upgrades are possible in the event of improved pool performance, paydown, and/or defeasance.
American Hotel said that the acquisition properties are being purchased at a weighted-average capitalisation rate of approximately 8.1% on trailing twelve months net operating income (after inclusion of all hotel management fees, franchise fees, a 4.0% FF/E reserve contribution, PIPs and Defeasance costs).
"Lower interest rates coupled with a recovery in property fundamentals and appraised values have made defeasance an option for many commercial real estate borrowers who wish to lock in a lower rate or take cash out of their properties," Trepp noted.
When the amortization had started to take effect on the loans, the borrower decided to pay the defeasance penalty and obtain a full-term seven-year interest-only loan with Beech Street.
The proposed amendments eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of Cricket or Leap to merge, consolidate or sell all or substantially all of their properties or assets contained in the indenture and the Notes.
Specifically, the new statement requires that, for current refundings and advance refundings resulting in debt defeasance reported by proprietary activities, the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized as a component of interest expense in a systematic and rational manner over the remaining life of either the old or new debt, whichever is shorter.
GASB 7, "Advance Refunding Resulting in Defeasance of Debt" (1987).