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Review of Short Phrases and Links |
This Review contains major "Defeasance"- related terms, short phrases and links grouped together in the form of Encyclopedia article.
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Definitions 
- Defeasance is a substitution of collateral.
- Defeasance is a complex process that is onerous for borrowers.

- Defeasance - A deed to defeat or invalidate another deed.

- DEFEASANCE is the release of a debtor from the primary obligation for a debt.

- Defeasance is a complex process and mistakes are easily made in negotiating terms.

Defeasance 
- Defeasance may also refer to a substitution of collateral, giving the lender a similar or superior source of repayment.
- The cash required to purchase the defeasance portfolio usually comes from the proceeds of a refinance or sale of the property.

- Many conduit loans made in the '90s are now subject to defeasance as the only method to unlock equity in real estate property.

- The closing itself is a 3 day process where the defeasance simultaneously closes with the underlying real estate sale or refinance transaction.

- Defeasance - clause in mortgage that gives the borrower the right to redeem the property after default by paying the full indebtedness and fees incurred.

- Conversely, rising interest rates make defeasance cheaper but make interest rates higher and proceeds lower on new loans.
- The exact value will depend on short term interest rates over the life of the defeasance.

- These accrued interest amounts accumulate over time and represent the residual value of the defeasance transaction.

- The cost of this portfolio is the baseline for the total cost of the defeasance to the borrower.
- Prior to the defeasance closing, this portfolio is approved by the Certifying Accountant.

- That constitutes debt extinguishment, but the in-substance defeasance no longer does.
- Corporate finance: short for in-substance defeasance, a technique whereby a corporation discharges old, low-rate debt without repaying it prior to maturity.

- This estimate is subject to market risk between today and the date of your defeasance.
- Any borrower analyzing a sale or refinancing opportunity needs to know what the defeasance will cost.

- It is critical that you plan the closing on your sale or refinancing to align with the closing of the defeasance transaction.

- Unlike yield maintenance, defeasance is neither a type of prepayment nor a prepayment penalty.
- The caveat is that if Treasury yields get close to the original coupon rate on the loan, then defeasance can be less expensive than yield maintenance.

- Fannie Mae's defeasance option gives the borrower a choice in lieu of yield maintenance when a property is released from the mortgage lien prior to maturity.

- As previously mentioned, this tactic also enables borrowers to benefit if the right to prepay the loan survives the defeasance.
- This document pledges the defeasance securities portfolio as collateral to secure the loan.

- Defeasance in a bill of sale is the putting an end to the security by realizing the goods for the benefit of the mortgagee.

- However, in Canada, defeasance does not release the borrower from the obligations under the mortgage loan.

- Each of these parties is well aware that defeasance is the only option that the borrower has to be released from the obligations of the loan.

- Defeasance clause - a clause in a mortgage that gives the borrower the right TP prepay a commercial mortgage by purchasing u.s.
- Securities transferred to Successor Borrower's defeasance account.

- Authorize purchase of defeasance collateral securities (day 1 of closing) 11.

- The defeasance provisions will dictate when and how a borrower may defease a loan.

- Chatham Financial has multiple methods available to quickly estimate the cost of the defeasance collateral for a defeasance.

- A significant factor in the defeasance of a loan is the date to which it is defeased i.e.
- This has significant value to the borrower and is a goal that Chatham Financial attempts to achieve in every defeasance.

- Loan purchasers should consider representations as to the earliest defeasance date for the loans being purchased.

- Chatham Financial drives the securities purchase and has never had a closing delayed due to any defeasance issue.

- The amount of Successor Borrower value is typically not known until the loan has fully matured and can only be estimated at the time of defeasance.

- A Recognisance in the nature of a Statute Staple was a strong form of bond that was normally cancelled by a separate deed, a Defeasance.
- In addition to these services, the Successor Borrower account is normally held at this bank once the defeasance has closed.

- Capital Defeasance Group charges a $8,000-$25,000 fee for its defeasance advisory services depending on the speed and complexity of the transaction.

- In another type of defeasance, a company instructs a broker to buy, for a fee, the outstanding portion of an old bond issue of the company.

- Defeasance is expensive and the process is complicated.
- The many parties to a defeasance can have different levels of involvement.

- They will charge a processing fee to cover the costs they incur in the defeasance of the loan.

- In short, it is somewhat similar to the original defeasance process from a legal perspective.

- The actual portfolio cost at the time of defeasance will depend on how efficiently the portfolio is structured.

- Please use our defeasance calculator for an estimate of the Successor Borrower value of your loan.
- Defeasance cost estimates can be obtained easily from free online calculators, like the one found at www.DefeaseWithEase.com.

- While our clients may not always see this in a favorable light, defeasance does have advantages to the Borrower.
- We are therefore confident in our ability to provide reasonable estimates to our clients for the defeasance of their loans.

- You can read more about other defeasance documents by clicking here.
- Defeasance documents delivered into escrow.

- Defeasance is subject to the terms of the loan documents and REMIC regulations.

- Learn more about the main defeasance documents that will be used to complete the transaction.

- Definition of defeasance as it relates to securitized commercial mortgages was authored by Seth Rosen of Meredith and Grew, Inc.
- Commercial Defeasance: Slowly but Surely As the CMBS market in Canada has matured, it has started to experience a growth in defeasance transactions.

- DEFEASANCE FIRST ENTERED THE CAPITAL markets in the early 1990s as a way to make the pricing on commercial mortgage-backed securities (CMBS) more attractive.

- Defeasance clause - A mortgage clause that states the mortgage is defeated if the accompanying note is repaid on time.
- The original note remains in place after a defeasance, but it is collateralized and serviced by the substituted securities instead of the real estate.

- If you have others, please contact us and speak with a Defeasance expert.
- Please call Chatham Financial to discuss these and other alternatives to defeasance.

- In addition, we will estimate the value that could be created by the Successor Borrower and discuss how you can receive a Defeasance Refund™ payment.

- Work with the Servicer's Counsel to ensure that this open period survives the defeasance process.
- The defeasance process can only start once the Servicer has received their deposit and retained counsel.

- Since the note survives a defeasance transaction, there is no termination or liquidated damage issues.

- The Servicer will also frequently request a deposit for Servicer's Counsel - their legal representation for the defeasance process.

- In brief, the defeasance process upgrades the credit of the pool that the loan is in by replacing the Borrower's credit with a risk free credit.

- The original note remains in place after a defeasance, but it is collateralized and serviced by the substituted securities instead of the real estate.
- Purchasing the securities for the defeasance collateral.

- Defeasance Consultants vary in their approach to purchasing securities.

- For a full estimate, including the securities portfolio and all fees, try our TrueQuote™Defeasance Cost Calculator.

- If Ratings Agencies are involved, you should allow 45 days to accommodate their need to review the details of the defeasance.
- The other costs of a defeasance are the various third parties' fees and the defeasance advisor's fee.
- Get a customized TrueQuote™ Defeasance Cost estimate for your loan now, including all securities costs and third party fees.

- Capital Defeasance Group has prenegotiated the professional fees with this third party network to ensure the lowest possible costs for our clients.

- Due to the securitization process, there are multiple parties that become involved in the defeasance process.
- Transaction costs include the fees of the various parties involved in the typical defeasance transaction.

- In general, it usually takes 30 to 45 days to execute a defeasance.
- A standard defeasance closing process takes place over a period of 3 days.

- These waived provisions typically relate to timing, notification, roles in the defeasance and payment requirements.
- This is perhaps best explained by examining their roles in the defeasance process.

- Meaning of defeasance as a legal term.
- Loan documents typically require that successor borrowers take the place of original borrowers upon defeasance.
- It is not strictly a defeasance, because the stipulation is in the same deed; it is really a condition in the nature of a defeasance.
- Definition of defeasance in the Ledal Dictionary - by Free online English dictionary and encyclopedia.
- Definition of Legal defeasance in the Financial Dictionary - by Free online English dictionary and encyclopedia.

- Typically, a defeasance is coordinated to close contemporaneously with a sale or refinance.
- The defeasance clause is not required in states using property liens as collateral for a mortgage.
- Defeasance Clause - A provision in a mortgage that allows the mortgagor to have his property released from the mortgage when the secured debt is paid.

- A defeasance clause embodies these common-law principles that govern this type of mortgage agreement.

- DEFEASANCE CLAUSE: The clause in a mortgage that gives the mortgagor the right to redeem his property upon the payment of his obligations to the mortgagee.
- DEFEASANCE CLAUSE is the clause in a mortgage that permits the mortgagor to redeem his or her property upon the payment of the obligations to the mortgagee.

- Structuring the portfolio of bonds for a defeasance is a complex task.
- Unlike yield maintenance, defeasance is neither a type of prepayment nor a prepayment penalty.
- Perhaps the one provision that has the greatest impact on the overall cost of a defeasance is the type of securities that can serve as defeasance collateral.
- For a loan with a five year remaining term, the defeasance collateral could consist of as many as forty individual securities.

- Rules governing the structuring of the defeasance collateral stipulate that the earned interest cannot be applied toward scheduled loan payments.

Categories 
- Collateral
- Prepayment

- Government Securities

- Municipal Bonds

- Glossaries > Glossary of Legal Terms /

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