novation
/noʊˈveɪʃən/
Word Rarity
Very rare
Frequency: Zipf frequency 2.00 in modern English
11
Scrabble Score
8
Letters
3
Syllables
6
Unique Chars
Meaning
noun
Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party.
Countable; Uncountable
noun
A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.
Countable; Uncountable
Example Sentences
- "1998, London Clearing House, submission to the U.S. Commodity Futures Trading Commission http://www.cftc.gov/opa/press98/opa4163-98-att.htm Netting by novation will occur immediately upon registration of the transaction in the SCM's name."
- "A similar novation of infrastructure ownership was seen as a logical development for the operation of Merseyrail services. But this has remained with Network Rail, […]."
- "An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five installments."
Etymology
Origin
- Source language: Latin
Word Breakdown
- Root: novātiō
Usage
Inflected Forms
Frequently Paired Words
novate
novatio