1. past tense of novate; to replace an old contract or obligation with a new one, typically involving the substitution of a new debtor or creditor.
Usage: legal/formal; commonly used in contract law and finance

Examples

• The original loan was novated when the company was acquired by a larger firm.
• The parties novated their agreement to reflect the new payment terms.
• After the merger, all existing contracts were novated to include the new entity.
• The debt was novated to a third-party lender with better interest rates.
• They novated the lease agreement to add the new tenant as a party.