An arrangement whereby the terms and conditions of a debt are avoided or defeated is known as:
A) defeasance.
B) discounting.
C) obligating.
D) collateralising.

Question

Quizplus · Accepted Answer

Defeasance refers to the act of avoiding or defeating the terms and conditions of a debt. It is often done by setting aside funds or securities that will be used to satisfy the debt in case of default. Discounting refers to the process of calculating the present value of a future payment or income stream. Obligating refers to the act of creating a legal duty or responsibility. Collateralising refers to the act of providing collateral or security for a loan or debt.

An Arrangement Whereby the Terms and Conditions of a Debt