Defeasance - Wikipedia 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]
What is Defeasance and How Does it Work? - Multifamily Loans What is Defeasance and How Does it Work? Defeasance refers to the replacement of the collateral of a loan with securities (generally fixed-rate government bonds) that will offer a lender an equivalent return
Defeasance Clause: What It Is and How It Works - LegalClarity A defeasance clause is a provision in a mortgage or deed of trust that requires the lender to release its claim on the property once certain conditions are met In residential lending, the clause simply means the lender gives up the lien when you finish paying off the loan
Defeasance - Overview, How It Works, Advantages Typically, defeasance is a process through which a lender’s claim on collateral is eliminated The borrower replaces the collateral with another security that is relatively risk-free, such as Treasury bills, or with a portfolio of low-risk securities
Defeasance Clause: How it Works | JPMorgan Chase What is defeasance? A defeasance clause is a provision in a commercial real estate loan agreement that lets a borrower replace the asset securing the loan with substitute collateral—typically a portfolio of U S government bonds—that provides similar cash flows over the loan’s remaining term