defeasance Hear it!

defeasance definition - finance
  1. The ability of a debtor to offset a liability by purchasing government securities or a specialized risk management contract.
  2. Voiding a contract or deed because a certain prohibited action has occurred.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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