Definitions

from The American Heritage® Dictionary of the English Language, 4th Edition

  • n. Law Substitution of a new obligation for an old one.

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • n. 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.
  • n. A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.

from the GNU version of the Collaborative International Dictionary of English

  • n. Innovation.
  • n. A substitution of a new debt for an old one; also, the remodeling of an old obligation; debt restructuring.

from The Century Dictionary and Cyclopedia

  • n. The introduction of something new; innovation.
  • n. A revolution.
  • n. In law, the substitution of a new obligation for an old one, usually by the substitution of a new debtor or of a new creditor.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

  • n. (law) the replacement of one obligation by another by mutual agreement of both parties; usually the replacement of one of the original parties to a contract with the consent of the remaining party

Etymologies

Late Latin novātiō, novātiōn-, from Latin, a renewing, from novātus, past participle of novāre, to make new, from novus, new.
(American Heritage® Dictionary of the English Language, Fourth Edition)
Latin novatio < novus ("new"). Compare novel, novelty. (Wiktionary)

Examples

  • In other cases, the person said, they were asking Credit Suisse to take over derivatives trades where the funds had exposure to European banks, a process called novation.

    Hedge Funds Hit Resistance on European-Bank Trades

  • Last week's term was novation, which is defined as:

    Legal Definitions

  • These so-called novation requests picked up sharply on Tuesday, March 11, as word spread among hedge-fund traders and brokers that Bear Stearns might not be able to pay what it owed to trading partners in swaps trades, according to the Bear Stearns trading records and hedge-fund managers.

    SEC Will Scour Bear Trading Data

  • Deutsche Bank agreed to many of these so-called novation requests, but charged more than usual to do so.

    Fear, Rumors Touched Off

  • Yesterday's term was novation, which is defined as:

    Sui Generis--a New York law blog:

  • FinNode Japan was established only a novation is a biological method for clean - strategic commitment.

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  • Barclays declined to comment on its arrangement with AIG, which is known as a "novation" in the world of derivatives.

    IBTimes.com RSS Feed

  • "We look for three key words: in novation, vibrancy and diversity," said Ms. Holy, adding that "diversity" extends to matters geographic, cultural, ethnic and artistic.

    So Much Fun to Find at the Fringe Festival

  • A novation may change one of the parties to the contract or the duties that must be performed by the original parties.

    Legal Definitions

  • This band receives a standing novation every night.

    DOLPH LUNDGREN, COWBELL, ETC.

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