forfeiture

for·fei·ture   (fôr'fĭ-chŏŏr', -chər)    n.   The act of surrendering something as a forfeit. Something that is forfeited; a penalty.

Forfeiture

The loss of an asset, or rights to an asset, as a result of defaulting on contractual obligations or conditions.

Investopedia Commentary

The party who did not fulfill the required obligations must give up the asset, or cash flows from the asset, as a form of compensation for the resulting losses to the other party.

Related Links

Pros And Cons Of Offshore Investing
The Importance of Your Credit Rating

See also: Asset, Credit Report, Default, Lien, Restricted Stock, Tangible New Worth

Also spelled: forfeit

Main Entry: for·fei·ture
Pronunciation: 'for-f&-"chur
Function: noun
1 : the loss of a right, money, or esp. property because of one's criminal act, default, or failure or neglect to perform a duty —compare WAIVER
2 : something (as money or property) that is forfeited as a penalty