Kennett square pa june 21 2010 - chatham financial, Microeconomics

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Kennett square pa june 21 2010 - chatham financial

Question: The following appears on the website of Chatham Financial, an advisory service:

Kennett Square, Pa., June 21, 2010 - Chatham Financial announced today that it advised Primus Capital in the defeasance of $76.9 million in debt secured by twelve properties held in two CMBS securitizations. The defeasance of the loans, which are scheduled to mature in 2018, facilitated the sale of the 12 movie theater properties.

Explain what is meant by a defeasance of loans.

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