wikipedia
English
Etymology
L.novus: new
Noun
en-noun|-
- Law Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party.
#*Netting by novation will occur immediately upon registration of the transaction in the SCM's name. — London Clearing House submission to the CFTC 1
- Law A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.
#*An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five instalments.
Related terms
novate
novatio
Translations
Afrikaans: novasie: vernuwing: novatio
Italian: novazione f
Category:Law
fr:novation
ru:novation
vi:novation
zh:novation
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