novation
Obligation transfer agreement
Novation is a legal term for replacing an existing contract or obligation with a new one.
Unlike an amendment, which modifies terms while keeping the original agreement intact, novation substitutes entirely—often bringing in a new party to assume the duties of an original party: The bank agreed to a novation, releasing the original borrower when the new owner took over the mortgage.
Replacing a loan
- creditorOne owed money
- borrowerOne who takes temporarily
- liabilityLegal or financial obligation
- obligationRequired task or commitment
repayment · loan · restructuring · discharge · assumption · release · lender · principal
Exchange of one for another
- assignmentAllocated work or duty
- dischargeRelease of substance outward
- tripartiteConsisting of three parts
- consentVoluntary agreement given
release · extinguishment · transfer · assumption · delegation · privity · counterparty · creditor
Exchange one for another
- counterpartyOther side in deals
- clearingTreeless space in forest
- bilateralInvolving two parties
- multilateralInvolving multiple parties
step-in · transferee · transferor · hedge · exposure · netting · OTC · futures
Exchange of one for another
- exchangeMutual giving and receiving
- swapExchange one for another
- transferMove between locations
- successionFollowing in order
superseding · supplanting · changeover · assumption · delegation · release · discharge · consent
refinancing
Replacing a loan
obligation · repayment · loan · restructuring · discharge · assumption · release · lender · principal · interest
substitution
Exchange of one for another
- assignmentAllocated work or duty
- dischargeRelease of substance outward
- tripartiteConsisting of three parts
consent · release · extinguishment · transfer · assumption · delegation · privity · counterparty · creditor · debtor
swap
Exchange one for another
- counterpartyOther side in deals
- clearingTreeless space in forest
- bilateralInvolving two parties
multilateral · step-in · transferee · transferor · hedge · exposure · netting · OTC · futures · options
substitution
Exchange of one for another
succession · superseding · supplanting · changeover · assumption · delegation · release · discharge · consent
- contractsbinding contracts, contract length, lease, clause, contract terms
- leasinglease agreement, tenant, lease term, lease terms, rent
- legal actsassignment, agreements, bequest, contracts, conveyance
- property transfertransfer of ownership, title, property transfer, lease, conveyance
- civil lawproperty disputes, Napoleonic Code, litigation, damage claims, codification
- contract lawobligation, performance, capacity, breach, contract terms
novationassignment
Allocated work or duty
continuation · preservation · retention · maintenance · persistence
novationassignment
Allocated work or duty
delegation · assumption · subrogation · subcontracting · transfer of rights
innovation, innovative, renovation, renovating, innovations, innovating, innovativeness, renovations, innovatively