This is the process of a borrower being released from their debt obligation by exchanging the lien on the site with a suitable replacement collateral, which is usually treasury bonds. The replacement is anticipated to generate a comparable cash flow substitution.
Defeasance
This is the process of a borrower being released from their debt obligation by exchanging the lien on the site with a suitable replacement collateral, which is usually treasury bonds. The replacement is anticipated to generate a comparable cash flow substitution.