Non recourse finance and Novation: Difference between pages

Revision as of 16:46, 19 April 2015

Law.

A method of loan transfer, which transfers the rights and obligations of a lender by creating in law a new ('nova') contract between the parties, on the same terms as the original agreement except that the transferee has taken the place of the transferor.
More generally, the legal process of creating a new contract, with the commercial effect of transferring legal rights and obligations. Another example is the novation of trading contracts through a central counterparty.

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-Finance from a lender for a commercial credit on terms which transfer the risk of default by the commercial debtor from the commercial seller to the lender or some third party guarantor or insurer; the lender has no recourse to the commercial seller.
+''Law.''
-In project finance, a financing which relies exclusively on the cashflows arising from the project and where the lender has no recourse to the company or companies undertaking the project.
+#A method of loan transfer, which transfers the rights and obligations of a lender by creating in law a new ('nova') contract between the parties, on the same terms as the original agreement except that the transferee has taken the place of the transferor.
+#More generally, the legal process of creating a new contract, with the commercial effect of transferring legal rights and obligations. Another example is the novation of trading contracts through a central counterparty.
 == See also ==
-* [[Recourse finance]]
+* [[Substitution]]
+* [[Assignment]]
+* [[Sub-participation]]
+* [[Clearing house]]
+[[Category:Long_term_funding]]
+[[Category:Compliance_and_audit]]
+[[Category:Treasury_operations_infrastructure]]