This article is largely based on an article in the out-of-copyright Encyclopædia Britannica Eleventh Edition, which was produced in 1911. It should be brought up to date to reflect subsequent history or scholarship (including the references, if any). When you have completed the review, replace this notice with a simple note on this article's talk page.(November 2015)
Defeasance (or defeazance) (French: défaire, to undo), in law, is an instrument which defeats the force or operation of some other deed or estate; as distinguished from condition, that which in the same deed is called a condition is a defeasance in another deed.[1] The term is used in several contexts in finance, including:[2]
a clause in a mortgage granting a borrower exclusive ownership in a property after a debt is repaid,
a corporate finance technique where a corporate bond issue is repaid through an irrevocable trust, which allows the corporation to remove liabilities from its balance sheet; notably used by Exxon in 1982
A defeasance should recite the deed to be defeated and its date, and it must be made between the same parties as are interested in the deed to which it is collateral. It must be of a thing defensible, and all the conditions must be strictly carried out before the defeasance can be consummated. Defeasance in a bill of sale is the putting an end to the security by realizing the goods for the benefit of the mortgagee. It is not strictly a defeasance, because the stipulation is in the same deed; it is really a condition in the nature.
^One or more of the preceding sentences incorporates text from a publication now in the public domain: Chisholm, Hugh, ed. (1911). "Defeasance". Encyclopædia Britannica. Vol. 7 (11th ed.). Cambridge University Press. p. 925.
Defeasance (or defeazance) (French: défaire, to undo), in law, is an instrument which defeats the force or operation of some other deed or estate; as distinguished...
they owe a personal debt to the state. A recognizance is subject to a "defeasance"; that is, the obligation will be avoided if person bound does some particular...
historically significant type of penal bond, the penal bond with conditional defeasance, printed the bond (the obligation to pay) on the front of the document...
of penal bond was the penal bond with conditional defeasance. A penal bond with conditional defeasance combined in one document the bond (the promise to...
contingent; if the condition is subsequent, the interest is vested, subject to defeasance. Anno: 131 ALR 712. "contingent interest". Academic Dictionaries and Encyclopedias...
usually refers to Middle English law of contracts, where a condition of defeasance is a clause that can invalidate or annul a contract or deed. Though defeat...
GASBS Partially superseded by GASBS 44 7. Advance Refundings Resulting in Defeasance of Debt Mar. 1987 Amended by GASBS 14, 34, and 86 Partially superseded...
sign judgment in an action against the debtor for the sum due, with a defeasance—a clause that the warrant shall not be put into force in case of due payment...
charter) in fee or for years to the lender; (2) an indenture or bond (the defeasance) reciting the loan and providing that if it was repaid the land would...
has not such a right in old-age benefit payments as would make every defeasance of "accrued" interests violative of the Due Process Clause of the Fifth...
of proprietary interest as a fixed chargee, but one that is subject to defeasance or overreaching by permitted dealings by the chargor with the charged...
Stratton 3 Cytomax 4 Rocketsports Racing 1 Red Paw Systems 2 Commercial Defeasance 1 The Westin 1 Michael McDowell 12-13 RuSPORT 9 Justin Wilson All SanDisk...
Stonely Deede, in the CRO, Huntingdon. It was not a Mortgage of 1606, but a defeasance (the annulment) dated 1620 of the 1602 deed. See www.wingfield.org sub...
for investment in Colorado businesses. The CAPCOs have argued that the defeasance structure and guaranty insurance are necessary in order to attract investment...
getting possession on a purchase. It was said, there was no promise of a defeasance. That is not necessary. But here is proved, in writing, a promise that...
Court – Deeds – Manor of Christon, Somerset and advowson of the church. Defeasance. 30 May 1593. Reference number AC/D/10/8. Date(s): 30 May 1593. Level...
paragraphs 4-12. Professor A. W. B. Simpson, The penal bond with conditional defeasance (1966) 82 LQR 392, 418-419 Sloman v Walter (1783) 1 Bro CC 418, at 419...
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