novation

English

Etymology

Borrowed from Latin novatio, novationis (“a renewing, rennovation”), from novo, from novus (“new”). Compare novel, novelty.

Noun

novation (countable and uncountable, plural novations)

  1. (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.
    • London Clearing House submission to the CFTC
      Netting by novation will occur immediately upon registration of the transaction in the SCM's name.
  2. (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.

Translations
The translations below need to be checked and inserted above into the appropriate translation tables, removing any numbers. Numbers do not necessarily match those in definitions. See instructions at Wiktionary:Entry layout#Translations.
Translations to be checked
This article is issued from Wiktionary. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.