Legally permitted removal of the outstanding debt (and the associated assets held in escrow) from the account books of the issuer of a bond. This action terminates the rights and the liens of the bondholders on the issuer's assets and occurs when either their claims have been fully satisfied or a provision has been for their satisfaction, such as through a new issue of bonds.
Related information about legal defeasance:
- Legal Defeasance - Financial Dictionary - The Free Dictionary
The deposit of cash and permitted securities, as specified in the bond indenture, into an irrevocable trust sufficient to enable the issuer to fully discharge its ...
- What is legal defeasance? - InvestorWords.com
Definition of legal defeasance: Legally permitted removal of the outstanding debt (and the associated assets held in escrow) from the account books of the issuer ...
- Defeasance - Municipal Securities Rulemaking Board
This is sometimes referred to as a “legal defeasance.” Defeasance usually occurs in connection with the refunding of an outstanding issue after provision has ...
- What is legal defeasance? - BusinessDictionary.com
Definition of legal defeasance: If outstanding debts occurred on a bond, the lender has the ability to make sure the debts are paid before the lender considers the ...
- Legal defeasance Definition - NASDAQ.com
Legal defeasance: read the definition of Legal defeasance and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Advance Refunding and Defeasance Policy
Most advance refundings result in defeasance of debt. Defeasance of debt can be either legal or in substance. A legal defeasance occurs when debt is legally ...
- Legal Defeasance Definition
Legal Defeasance Stipulations in bond indenture according to which cash or permitted securities are deposit into a trust that cannot be revoked. This.
- Advance Refunding Bonds.
A legal defeasance occurs when the covenants relating to the outstanding bonds are satisfied with respect to the retirement of the debt. For accounting and ...