Defeasance, also spelled defeazance and derived from the French defaire, to undo, is in law an instrument which defeats the force or operation of some other deed or estate. It is distinguished from a condition, since what is called a condition in the same deed is a defeasance when it appears in another deed. The term is also used in several contexts in finance, including a clause in a mortgage granting a borrower exclusive ownership of a property after a debt is repaid, and a corporate finance technique in which a corporate bond issue is repaid through an irrevocable trust, allowing 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.
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1. Wikipedia: Defeasance
an instrument which defeats the force or operation of some other deed or estateView the Source 2. Defeasance (Wikipedia)
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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.
- In Group: Estate in Land, lead paragraph defines the estate-ending condition
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