Novation
Definition of 'Novation'1.The act of replacing one participating member of a contract with another.2. The exchange of new debts or obligations for older existing ones. |
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Investopedia explains 'Novation'1. All rights, duties, and terms are transferred to the new party upon consent of all parties affected.2. A method used to extend the life of debt and obligations. Very similar to a rollover. |
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