Difference between revisions of "Novation"

From ACT Wiki
Jump to: navigation, search
(Generalise to include other examples such as central counterparty novation.)
(Link with Central counterparty page.)
Line 10: Line 10:
 
* [[Sub-participation]]
 
* [[Sub-participation]]
 
* [[Clearing house]]
 
* [[Clearing house]]
 +
* [[Central counterparty]]
  
 
[[Category:Long_term_funding]]
 
[[Category:Long_term_funding]]
 
[[Category:Compliance_and_audit]]
 
[[Category:Compliance_and_audit]]
 
[[Category:Treasury_operations_infrastructure]]
 
[[Category:Treasury_operations_infrastructure]]

Revision as of 17:01, 19 April 2015

Law.

  1. 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.
  2. 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