Practice whereby the borrower sets aside cash or bonds sufficient to service the borrower's debt. Both the borrower's debt and the offestting cash or bonds are removed from the balance sheet. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • defeasance — de·fea·sance /di fē zəns/ n [Anglo French defesance, literally, undoing, destruction, from Old French deffesant, present participle of deffaire to destroy, undo see defeat] 1 a: a condition (as in a deed or will) that upon fulfillment terminates… …   Law dictionary

  • Defeasance — De*fea sance, n. [OF. defesance, fr. defesant, F. d[ e]faisant, p. pr. of defaire, F. d[ e]faire, to undo. See {Defeat}.] 1. A defeat; an overthrow. [Obs.] [1913 Webster] After his foes defeasance. Spenser. [1913 Webster] 2. A rendering null or… …   The Collaborative International Dictionary of English

  • defeasance — early 15c., from Anglo Fr. defesaunce, O.Fr. desfaisance undoing, destruction, from desfaire (Mod.Fr. défaire) to undo, destroy (see DEFEAT (Cf. defeat)). Related: Defease; defeasible …   Etymology dictionary

  • defeasance — [dē fē′zəns, difē′z ns] n. [ME & Anglo Fr defesaunce < OFr defesance < defesant, prp. of defaire, desfaire: see DEFEAT] 1. the annulment of a contract or deed 2. a clause stating a condition the fulfillment of which makes the deed, contract …   English World dictionary

  • Defeasance — Contents 1 Defeasance of Commercial Mortgage Loans 1.1 Defeasance of a Securitized Commercial Mortgage Loan 1.2 Defeasance Terms to Consider at Loan Origination …   Wikipedia

  • Defeasance — Défaisance La défaisance (en anglais defeasance) est une opération financière consistant à céder simultanément des actifs financiers et des dettes à une société tierce, souvent une structure de défaisance. Cette cession est irrévocable. Cette… …   Wikipédia en Français

  • defeasance — The legal release of a debtor from being the primary obligor under the debt, either by the courts or by the creditor. Also called legal defeasance. See in substance defeasance The setting aside by a borrower of cash or bonds sufficient to service …   Financial and business terms

  • defeasance — noun a) Destruction, defeat, overthrow. that hoarie king, with all his traine, / Being arriued, where that champion stout / After his foes defeasance did remaine [...]. b) the rendering void of a contract or deed; an …   Wiktionary

  • defeasance — /dafiyzans/ An instrument which defeats the force or operation of some other deed, estate, or will. A collateral deed made at the same time with a feoffment or other conveyance, containing certain conditions, upon the performance of which the… …   Black's law dictionary

  • defeasance — noun Etymology: Middle English defesance, from Anglo French, from defesaunt, present participle of defaire Date: 15th century 1. a. (1) the termination of a property interest in accordance with stipulated conditions (as in a …   New Collegiate Dictionary

  • defeasance — /di fee zeuhns/, n. Law. 1. a rendering null and void. 2. a condition on the performance of which a deed or other instrument is defeated or rendered void. 3. a collateral deed or other writing embodying such a condition. [1400 50; late ME… …   Universalium

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