Defeasance Clause

Definition: A provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage.

Pronunciation:  \di-ˈfē-zən(t)s\  \ˈklȯz\

Used in a Sentence:   Once the debt is repaid, the defeasance clause defeats the mortgage lien and the property is no longer pledged as collateral.

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