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.
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.
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.
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
Word Usage
"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."