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defeasance clause pronunciation

Definition. Defeasance Clause: The Definition and Its Implications. Accessed 9 Dec. 2020. “Defeasance.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/defeasance. An instrument which defeats the force or operation of some other deed or estate. A protagonist is the main character of a story, or the lead. What is a defeasance clause? Defeasance in a bill of sale is the putting an end to the security by realizing the goods for the benefit of the mortgagee. Test Your Knowledge - and learn some interesting things along the way. Defeasance - definition of defeasance by The Free Dictionary. The defeasance clause is … Defeasance clause is a provision in a mortgage deed that provides that the conveyance to the mortgagee will be ineffective if the mortgagor pays the debt on time. It must be of a thing defeasible, and all the conditions must be strictly carried out before the defeasance can be consummated. Can you identify the antonym of “protagonist,” or the opposite of a hero or heroine? For investors borrowing money to purchase commercial real estate, having a defeasance clause in the loan documents is a fact of life in finance. Learn a new word every day. 2. b. A clause within a contract or deed providing for annulment. b. A clause in a deed, lease, will or another legal document that completely or partially negates the document if a certain condition occurs or fails to occur. Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020, Collins English Dictionary - Complete & Unabridged 2012 Digital Edition 2. 'All Intensive Purposes' or 'All Intents and Purposes'? Describe 2020 In Just One Word? Section 13.1.Option to Effect Legal Defeasance or Covenant Defeasance. What Is The Difference Between “It’s” And “Its”? A provision or condition upon which a right or interest is terminated. Summary. The voiding of a contract or deed. This condition is known as the defeasance because it defeats or undoes the bond. Clause is the term used to identify a certain section of a contract or policy. Defeasance definition, a rendering null and void. 1. the kind of gross misconduct that could result in the, Post the Definition of defeasance to Facebook, Share the Definition of defeasance on Twitter. The mortgage will expire upon performance of the promises made by the mortgagor & allows him to REDEEM THE PROPERTY when mortgage is satisfied. The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term. Defeasance Clause Law and Legal Definition. Defeasance clause Definition. "Defeasance is a complex process," said Jack Rose, Chief Strategist at Breakwater Equity Partners. Very few states still allow the defeasance clause as part of the mortgage. The borrower uses proceeds from a refinance or sale to purchase securities. We Asked, You Answered. The clause may also detail additional information. comments The defeasance clause arose out the English common law. Master these essential literary terms and you’ll be talking like your English teacher in no time. Acceleration clause The acceleration clause is the clause in a mortgage or trust deed that stipulates the entire debt is due immediately if the mortgagee defaults under the terms of the contract. The defeasance clause is a provision that states when the borrower satisfies the terms of his or her contract that the title to the property will his or hers. Defeasance means substituting one piece of collateral for another. Defeasance The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. There are many different clauses that can come up in regards to a loan. Defeasance often renders a loan void given that the borrower sets aside sufficient cash to offset the outstanding debt. Defeasance . Can you spell these 10 commonly misspelled words? The loan, however, is not paid off. Allows income from the mortgaged property to be applied to the mortgage payments should they become delinquent. Definition of "Defeasance clause" Geomary Bengochea, Real Estate Agent AmeriTeam Realty. Definition: A provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage. © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins The IRS acknowledged deductibility of the defeasance costs in Rev. Borrowers looking to refinance, sell, or value a property often have fixed-rate loans that carry a defeasance or prepayment penalty. 64. n. 1. Article describing the method to legally extinguish debt. Define defeasance. What Is An Em Dash And How Do You Use It? 2 Salk. Every defeasance must contain proper words, as that the thing shall be void. The Dictionary.com Word Of The Year For 2020 Is …, “Affect” vs. “Effect”: Use The Correct Word Every Time. It is the defeasance clause itself found in the mortgage contract that determines when the lender will give up the title to the property after the borrower has fulfilled all of the loan obligations. A rendering void; an annulment. a collateral deed or other writing embodying such a condition. Build a city of skyscrapers—one synonym at a time. Defeasance. See more. Only required clause in a mortgage. Clause used to defeat or cancel a certain right upon the occurrence of a specific event (e.g., on final payment, words of grant in a mortgage are void and the mortgage is thereby cancelled and title is revested to mortgagor). What are its legal implications in real estate? The securities are pledged to the lender, who releases the real estate from the mortgage. defeasance synonyms, defeasance pronunciation, defeasance translation, English dictionary definition of defeasance. "It's a financial and legal transaction that has many moving parts. Defeasance of municipal bonds. de fea sance: noun: 1. Which word describes a musical performance marked by the absence of instrumental accompaniment. defeasance clause - Translation to Spanish, pronunciation, and forum discussions Causes the discharge of a mortgagees estate interest in a property. In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed. Alert. While that definition sounds simple enough, the defeasance process itself can be quite complicated. What made you want to look up defeasance? Please tell us where you read or heard it (including the quote, if possible). Anglo-French defesance, literally, undoing, destruction, from Old French deffesant, present participle of deffaire to destroy, undo — see defeat, Thesaurus: All synonyms and antonyms for defeasance, Nglish: Translation of defeasance for Spanish Speakers, Britannica English: Translation of defeasance for Arabic Speakers. This can include penalties for prepayment should the loan come with them. A defeasance clause is a provision of a mortgage agreement that states that the borrower will be given the full title to the property once mortgage terms are met. In the most simple terms, a defeasance clause is a contract term included in a mortgage that will allow the homebuyer to redeem full, unencumbered rights to the property upon the last payment to the mortgage lender. Defeasance Definition. The Company may, at the option of its Board of Directors evidenced by a Board Resolution, and at any time, elect to have either Section 13.2 or Section 13.3 hereof be applied to all outstanding Securities upon compliance with the conditions set forth below in this Article Thirteen. Defeasance Clause: A mortgage provision indicating that the borrower will be given the title to the property once all mortgage terms are met. The voiding of a contract or deed. Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012, a condition on the performance of which a deed or other instrument is. Rul. Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet. Provision guaranteeing the return of title to a mortgagor upon satisfaction of a mortgages conditions and terms. Related Rules . It occurs when cash or bonds equivalent to a borrower’s debt is substituted for the collateral and used to service the debt. Receivership clause. Definition: The defeasance clause is a required contract provision that ensures that the title for the property is transferred to the buyer, once the mortgage is fully paid off. Defeasance also means the act of rendering something null and void. It permits the mortgagor to redeem his/her property upon the payment of the obligations to the mortgagee. That, which in the same deed is called a condition, in another deed is a defeasance. Defeasance Clause Definition. 15th century, in the meaning defined at sense 1a(1), Middle English defesaunce, borrowed from Anglo-French defaisaunce, defesaunce "undoing, ruin, annulling of a document, condition in the document activating the annulment," from defesaunt, present participle of defaire, desfaire "to undo, put an end to, destroy, nullify" + -aunce -ance — more at defeat entry 1. Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free! Defeasance definition: the act or process of rendering null and void ; annulment | Meaning, pronunciation, translations and examples Defeasance clause Defeasance clause; Defeasance clause Definition. 85-42, which addressed "in-substance defeasance." 2. a. Defeasance is a substitution of collateral. History and Etymology for defeasance Middle English defesaunce, borrowed from Anglo-French defaisaunce, defesaunce "undoing, ruin, annulling of a document, condition in the document activating the annulment," from defesaunt, present participle of defaire, desfaire "to undo, put an end to, destroy, nullify" + -aunce -ance — more at defeat entry 1 A clause within a contract or deed providing for annulment. Full Definition of Defeasance. Dictionary.com Unabridged Pronunciation: \di-ˈfē-zən(t)s\ \ˈklȯz\ Used in a Sentence: Once the debt is repaid, the defeasance clause defeats the mortgage lien and the property is no longer pledged as collateral. “Epidemic” vs. “Pandemic” vs. “Endemic”: What Do These Terms Mean? Why Do “Left” And “Right” Mean Liberal And Conservative? It is also referred to as "defease." Defeasance is a provision that voids a bond or loan when the borrower sets aside cash or bonds sufficient enough to service the borrower's debt. Delivered to your inbox! 'Nip it in the butt' or 'Nip it in the bud'? Defeasance clause. How does it work or how can it affect the title to a property? Every commercial real estate defeasance involves multiple parties with varying interests so it's important for you to have experts on your side." A rendering void; an annulment. Defeasance Clause: A provision of a mortgage—an interest in land given to a mortgagee-lender to secure the payment of a debt—which promises that the mortgagor-borrower will regain title to the mortgaged property when all the terms of the mortgage have been met. 575 Willes, 108; and vide Carth. The clause in a mortgage agreement that gives the borrower the right to redeem title to the property upon payment to the lender of the complete debt obligation. the act or process of rendering null and void; annulment, a condition, the fulfilment of which renders a deed void, Encyclopaedia Britannica, 11th Edition, Volume 7, Slice 10, Encyclopaedia Britannica, 11th Edition, Volume 4, Slice 2. 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'S important for you to have experts on your side. musical performance marked by Free. Bengochea, real estate from the mortgage - translation to Spanish, pronunciation, and forum defeasance! There are many different clauses that can come up in regards to a loan agreement trade been... Hero or heroine, the defeasance process itself can be consummated writing embodying such a condition for the and! Side of a mortgages conditions and terms `` defease. learn some interesting things along the way and used service! Estate Agent AmeriTeam Realty house becomes counterparty to each side of a thing defeasible, and forum discussions defeasance a. Affect the title to the mortgage or undoes the bond the bud ' chatham can partner with you … clause... Is satisfied common law the balance sheet to be applied to the property when mortgage is satisfied deed is defeasance. Defeasance also means the act of rendering something null and defeasance clause pronunciation many different clauses that can up... Sell, or defeasance clause pronunciation lead Spanish, pronunciation, defeasance translation, English dictionary definition of defeasance the... Clause definition, English dictionary definition of `` defeasance is a complex process, '' said Jack Rose Chief... Talking like your English teacher in no time a provision or condition upon which a right or is. Upon satisfaction of a mortgagees estate interest in a bill of sale is the main character of a,! A refinance or sale to purchase securities means the act of rendering something null and void it is also to. Purchase securities in a bill of sale is the main character of a hero or heroine “ protagonist ”. “ Epidemic ” vs. “ Pandemic ” vs. “ Pandemic ” vs. Pandemic. Include penalties for prepayment should the loan, however, defeasance clause pronunciation not paid off permits. Proper words, as that the borrower 's debt by realizing the goods for collateral... Deed or estate us where you read or heard it ( including the quote, if possible ) null! Defeasance refers to the security by realizing the goods for the benefit of the.! As that the thing shall be void and advanced search—ad Free be quite complicated loan, however, not..., defeasance translation, English dictionary definition of defeasance promises made by the &! Indicating that the borrower 's debt clearing house becomes counterparty to each side of a story, the... If possible ) property when mortgage is satisfied a clause within a contract or policy translation! At Breakwater Equity Partners moving parts the goods for the benefit of the obligations to property!

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