novation
Pronunciation
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Pronunciation
- IPA: /noʊˈveɪʃən/
novation
- (legal) Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party.
- 1998, London Clearing House, submission to the U.S. Commodity Futures Trading Commission
- Netting by novation will occur immediately upon registration of the transaction in the SCM's name.
- 1998, London Clearing House, submission to the U.S. Commodity Futures Trading Commission
- (legal) A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.
- An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five installments.
- novate
- novatio
- French: novation
- German: Novation, Neuerungsvertrag
- Italian: novazione
- Portuguese: novação
- Spanish: novación
This text is extracted from the Wiktionary and it is available under the CC BY-SA 3.0 license | Terms and conditions | Privacy policy 0.002