novation

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novation

A term used in contract and business law to describe the act of either replacing an “obligation to perform” with a new obligation, or replacing a party to an agreement with a new party. In the NHS, novation translates as the transfer of contract ownership and associated contractual obligations from one NHS organisation to another.
References in periodicals archive ?
This rating action is purely event driven following Commodity Futures Trading Commission's (CFTC) No-Action Position exempting novated or transferred legacy SPV swaps from variation margin posting.
The novated programme under MSB has been assigned a rating of AIS with a stable outlook, full details of which have been provided in our rating announcement on 2 May 2013.
INPEX has novated this contract to McDermott as part of the overall subsea umbilical, riser, flowline EPCI contract.
At the same time, internal retrocession business ceded by XL Re Life America Inc was novated from XL Life to a non-US subsidiary of SCOR.
Fitch's rating action follows the 'No-action Position' of the CFTC exempting novated or transferred legacy SPV swaps from variation margin posting.
The Sukuk issued by PLUS is to be repaid with future operating cash flows from the acquired portfolio of tolled expressways, the concessions of which will be novated to the issuer.