What does Defeasance mean? Read on to discover the definition & meaning of the term Defeasance - to help you better understand the language used in insurance policies.
The degree of risk inherent in a bond to which bondholders are subject. An issue that is fully "defeased" means that both bond principal and bond interest are at risk of loss in their entirety.
We hope the you have a better understanding of the meaning of Defeasance.