How Do You Spell DEFEASANCE?

Pronunciation: [dɪfˈiːzəns] (IPA)

Defeasance is a word that has a tricky spelling. The IPA phonetic transcription shows that the first syllable of the word is pronounced "di-," which is similar to "dey." The second syllable of the word is pronounced "-fiz-" and sounds like "feeze." The last syllable of the word is pronounced "-əns," which is like "uhns." Overall, the word is pronounced as "di-fee-zuhns." Defeasance refers to the act of cancelling or nullifying something, especially a legal agreement or a debt obligation.

DEFEASANCE Meaning and Definition

1. Defeasance is a legal term used to describe the act of nullifying or cancelling a legal agreement or obligation upon the fulfillment of certain conditions. It refers to the process of extinguishing or making void a contract, usually through the performance of specific terms or the occurrence of particular events.

   In finance and investment contexts, defeasance refers to a method used to discharge or remove debt obligations, particularly in relation to bonds or loans. It involves setting aside funds, often in the form of cash or securities, to guarantee the repayment of the debt when it becomes due. The funds are typically placed in an irrevocable trust that is carefully managed until the debt is fully repaid. The purpose of defeasance is to safeguard the repayment of the debt and eliminate any risk or uncertainty associated with it.

   Defeasance serves as a means of providing security to both parties involved in a contract or loan agreement. It ensures that the debtor fulfills their financial obligations and that the creditor receives the promised repayment. It also provides reassurance to investors or bondholders, as it guarantees that the funds to repay the debt are available.

   Overall, defeasance is a legal and financial mechanism that eliminates contractual obligations or liabilities by fulfilling specific conditions, ensuring the proper discharge of debt and safeguarding the interests of all parties involved.

2. The act of rendering null; the preventing of the operation of an instrument.

   Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.

Common Misspellings for DEFEASANCE

• sefeasance
• xefeasance
• cefeasance
• fefeasance
• refeasance
• eefeasance
• dwfeasance
• dsfeasance
• ddfeasance
• drfeasance
• d4feasance
• d3feasance
• dedeasance
• deceasance
• deveasance
• degeasance
• deteasance
• dereasance
• defwasance

Etymology of DEFEASANCE

The word "defeasance" originated from the Old French term "defeasance" or "defaiance", which evolved from the Latin word "disfacere" meaning "to destroy" or "to undo". The prefix "de-" implies "reverse" or "undoing", and "faisance" or "facere" means "to do" or "to make". Thus, "defeasance" conveys the idea of negating or undoing an action or a legal agreement.

Plural form of DEFEASANCE is DEFEASANCES