novation
Jump to navigation
Jump to search
English[edit]
Etymology[edit]
Borrowed from Latin novātiō (“a renewing, rennovation”), from novō, from novus (“new”). Compare novel, novelty.
Pronunciation[edit]
Noun[edit]
novation (countable and uncountable, plural novations)
- (law) 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 [1]
- 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 [1]
- (law) 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.
Related terms[edit]
Translations[edit]
new contract
|
- The translations below need to be checked and inserted above into the appropriate translation tables. See instructions at Wiktionary:Entry layout § Translations.