Question
When the debtor sets aside money in a trust such that the investment and any return will be sufficient to pay the principal and the
When the debtor sets aside money in a trust such that the investment and any return will be sufficient to pay the principal and the interest to the creditor, but the creditor does NOT release the company from the primary obligation to settle the debt, this type of arrangement is known as
in substance defeasance.
in substance refunding.
substantive repayment.
legal defeasance.
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
