Novation: Difference between revisions
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imported>Doug Williamson (Generalise to include other examples such as central counterparty novation.) |
imported>Doug Williamson (Link with Central counterparty page.) |
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* [[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.
- 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.
