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Glite Dictionary
🏆 To defeat 📄 To cancel legally
to defease

to defease

9.9
To make a debt or contract no longer valid
  • verb
  • /dɪˈfiːz/
  • Specialized
translation icon : anular
  • To defease, you have to acquire enough US Treasuries to replace the $50,000 cash flow.

Examples

  • They decided to defease the old contract after realizing the terms were no longer favorable.

  • Yes, the exit costs tied to defeasance are currently high, but one potential benefit is the ability to defease at a discount.

    Blog text (7)

  • We had several clients defease their loan in 2007 with a treasury portfolio that was less than the outstanding principal balance.

    Blog text (7)

  • The company chose to defease its debt using Treasury securities to improve its financial position.

  • In order to defease the obligation, they needed to set aside sufficient funds in government bonds.

Synonyms

to nullify
vsto defease
  • Formal
15 7.2

To make a law or contract have no legal effect

is specific to contracts obligations or debts rather than any legal act
to annul
vsto defease
  • Formal
6 6.3

Officially say that a law, contract, or marriage is no longer valid

is used to remove legal force from contracts and debts specifically
to disannul
vsto defease
  • Formal
9.3

To cancel an earlier decision that said something was not valid so it becomes valid again

is the modern term for rendering contracts and debts void

Antonyms

to validate
  • Formal
87 3.9

To make something officially acceptable by showing proof

How Final

to void
  • Formal
23 7.1
to defease
  • Specialized
9.9
to annul
  • Formal
6 6.3
to rescind
  • Formal
44 7.9
to set aside
  • Formal
10 7.6
to invalidate
  • Formal
33 6.1
to negate
52 5.3

Surface Forms

defease infinitive
defeased past
defeased past participle
defeasing present participle
defeases third person singular

Etymology

Defease comes from the same old parts de- 'away' and a root meaning 'make' or 'undo', and in law the word kept the idea of 'undoing' a claim or right. So to defease a debt or contract is to make it 'void' or no longer in effect.