Most people won't have ever come across the word defeasance before, but if you work in and around finance it will come up eventually so it is useful to be familiar with what defeasance refers to.

And essentially it is this: a clause in an agreement for a product such as a loan which allows the person who borrows the money (e.g. a mortgage holder) the entitlement to redeem anything that acts as a security against that debt once that debt is repaid.

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