novation

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Novation

Novation

1. The transfer of a contract from one party to another by mutual consent of the original counterparties and the concurrence of the new party.

2. See: Rollover.

novation

The substitution of one debt with another debt.

novation

The substitution of a new contract, debt, or obligation for an existing one. Usually encountered when a tenant assigns the lease to another,or when a new building owner requires all existing tenants to execute novation agreements.The effect is to extinguish all obligations under the old agreements and replace them with the new obligations.

References in periodicals archive ?
The novated contracts represent advanced processing technologies that will augment our initial product manufacturing, as well as provide the seeds for several generations of products yet to come with the potential of reaching 20% efficiencies or more.
This design (and possibly the Design Team) will subsequently be novated to a Design and Build contactor; with the Project Team being retained by the Client.
AGC has transferred some of its higher-risk insured business to AG Re, including some health care, all of its layered and first-loss reinsurance, and single-name credit default swaps (the latter subsequently fully novated by AG Re).
Tenders are invited for (a) demolition works - removal of some internal walls and breaking out new doors, amending opes to make windows into doors and part removal of paths (b) construction works including subdividing the unit, internal walls partitions, new doors and finishes (c) all services have been tendered separately and the mechanical and electrical contractors will be novated.
Fitch's ratings of 'A / F1' for AWS are withdrawn for Anglian Water Services Limited ('AWS') and AWG plc ('AWG'), given that all of the regulated subsidiary's debt has been novated to the new structured vehicle.
the specialist contractor will be novated to the main contractor.
The ratings also take into account the liquidity facility and interest rate cap agreements with appropriately rated counterparties, which will be entered into or novated at closing.
This separate maintenance contract will be novated to be a sub-contract of the successful contractor.
Ashanti would like to announce that CSFB has now novated all of its existing hedging trades with Ashanti (the "Novated Trades") to Barclays Bank PLC ("Barclays") and is consequently no longer an Active Counterparty of Ashanti.