Defeasance

Defeasance, in law, is an instrument which defeats the force or operation of some other deed or estate; as distinguished from condition, that which in the same deed is called a condition is a defeasance in another deed. The term is used in several contexts in finance, including:a clause in a mortgage granting a borrower exclusive ownership in a property after a debt is repaid, a corporate finance technique where a corporate bond issue is repaid through an irrevocable trust, which allows the corporation to remove liabilities from its balance sheet; notably used by Exxon in 1982