In-substance debt defeasance

In-substance debt defeasance,

Definition of In-substance debt defeasance:

  1. A loan provision that removes it from the balance sheet of cash is set to the side for debt service. Defeasance typically happens when a borrower owns a portfolio of Treasury securities where coupons are used to service a debt. If the borrower set aside enough assets to cover the debt obligation, the debt will not need to be listed on a balance sheet.

Meaning of In-substance debt defeasance & In-substance debt defeasance Definition