Exoneration

AAA

DEFINITION of 'Exoneration'

In a general sense, this term means to free from blame or guilt, such as when a criminal is proven innocent. In the financial realm, exoneration usually means to relieve one of a financial obligation or duty. This can apply in many different areas of finance, such as taxation or mortgages.

INVESTOPEDIA EXPLAINS 'Exoneration'

The various financial aid programs offered by the government to provide relief to struggling homeowners are forms of exoneration. Delinquent mortgage holders will be exonerated of their current obligations and reassigned new ones that they can manage more easily. A taxpayer who convices the IRS that he or she does not owe taxes that have been assessed is also exonerated from paying those taxes.

RELATED TERMS
  1. Insurance Claim

    A formal request to an insurance company asking for a payment ...
  2. Rider

    A provision of an insurance policy that is purchased separately ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Waiver

    The voluntary action of a person or party that removes that person's ...
  5. Forbearance

    A temporary postponement of mortgage payments.
  6. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes ...
Related Articles
  1. The History Of Insurance In America
    Home & Auto

    The History Of Insurance In America

  2. Exploring Advanced Insurance Contract ...
    Home & Auto

    Exploring Advanced Insurance Contract ...

  3. Using Logic To Examine Risk
    Active Trading Fundamentals

    Using Logic To Examine Risk

  4. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center