|
Novation
|
Replacing one or a series of contracts with a new contract, often with a third party replacing one of the original parties. Novation may be used to cancel agreements that have already been offset with other agreements. It is usually reserved for situations where any risk associated with the creation of a new agreement is offset by the release of capital or credit lines tied up in an unnecessarily complex structure. See also Netting by Novation.
|
