Defeasance

{
  "id": "MLC-T-INS-001097",
  "term": "Defeasance",
  "field": "Insurance and risk management",
  "definition": "A provision in a contract or bond that renders it null and void upon the fulfillment of certain conditions. In finance, it involves setting aside sufficient funds or securities to cover a debt obligation, thereby releasing the original debtor from their primary liability. This technique is used to remove debt from a company's balance sheet.",
  "url": "https://mlchart.com/terminology/insurance/defeasance/"
}