In-Substance Defeasance

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In-substance defeasance

Process through which debt is removed from the balance sheet but not canceled.

In-Substance Debt Defeasance

A provision in a loan removing it from a balance sheet if cash or a portfolio is set aside for debt service. Usually, defeasance occurs when a borrower owns a portfolio of Treasury securities whose coupons are used to service a debt. When the borrower has set aside sufficient assets to cover the debt, the debt does not need to be recorded on a balance sheet.

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Economic Defeasance			In-substance defeasance no longer is considered to constitute an extinguishment of debt. Accounting for transfers and servicing of financial assets and ... by Thompson, James H. / The National Public Accountant Other issues discussed were the auditing of airport passenger facilities charges, in-substance defeasance of debt, recommendations to the GASB suggesting the reduction of note disclosure for state and local governments, and ethics interpretations on auditing. Winter Meeting 1998 by Government Finance Review Statement 76 allows the derecognition of a liability when you meet certain criteria, for example when you place assets in an irrevocable trust to satisfy the cash flow requirements (principal and interest) of a specific debt (the procedure is referred to as an in-substance defeasance of debt). The many faces of financial instruments by Blanchet, Jeannot / Financial Executive			In Pari Delicto in perpetuity In Play in rem in situ In Street Name In the Box In the Hole In the Middle In the Money In the Tank In Touch With In Za Manee In-and-Out In-and-out trader in-fill development In-Flight Survey In-House In-House Processing Float in-house sale In-House Trade In-Kind Distribution In-Line In-Service Withdrawal In-Substance Debt Defeasance In-Substance Defeasance In-the-Money In-the-Money Option Inactive Account Inactive Asset Inactive Bond Crowd inactive license Inactive Post Inactive Security Inactive Stock/Bond Inactivity Fee Inadempimento del contratto Inadimplente Inc. Incentive Fee Incentive Stock Option Incestuous Share Dealing inchoate Incident de paiement Incipient Default inclusionary zoning income income and expense report Income Annuity income approach income averaging			In-Situ Oxidative Technologies In-Situ Particle Monitor In-Situ Prompt Gamma-Ray Activation Analysis In-situ resource utilization In-Situ Steam Generation In-situ Storage Image Sensor In-Situ Thickness Measurement System In-Situ Vitrification In-Source Collision Induced Dissociation In-Space Support System In-Space Technology Experiment In-Space Technology Experiments Program in-stent restenosis IN-STEP In-Stock Certification Program in-store In-Store Bakery In-Store Bank In-Store Digital Media In-Store Experience In-Store Marketing In-Store Pickup In-stream Waste Concentration in-substance debt defeasance In-Substance Defeasance In-suit Drink Bag In-swinger In-System Configurable In-System Programmability in-system programmable in-system programmable In-System Programmable Large Scale Integration In-Tac anchoring system In-Tank Precipitation In-Target Probe in-text advertising In-the Money In-the-Box In-The-Canal In-the-Hole In-the-money In-the-money option In-the-Money Options In-The-Primary Zone in-the-seam mining In-Theater Computer Repair Activity IN-TINA Adaptation Unit In-Toeing In-Training Evaluation Report In-Transit Buffer

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