TITLE

DEFEASANCE VS. YIELD MAINTENANCE: WHAT'S THE DIFFERENCE?

AUTHOR(S)
Schonberger, Michael; Moliver, Donald M.
PUB. DATE
June 2001
SOURCE
Real Estate Issues;Summer2001, Vol. 26 Issue 2, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
Explains defeasance, an alternative to a yield maintenance formula that may provide a benefit to the borrower. Practical and legal differences between a yield maintenance prepayment and a defeasance transaction; Hypothetical comparative example of the cost to prepay using a yield maintenance formula versus the cost to execute a defeasance; Procedural steps to complete a defeasance.
ACCESSION #
5007964

 

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