1. to replace an old obligation or contract with a new one, typically by agreement of all parties involved
Usage: legal/formal; third person singular present tense of 'novate'

Examples

• The bank novates the original loan agreement with updated terms.
• When the company novates its debt, creditors must agree to the new arrangement.
• The contract novates the payment schedule to extend the deadline by six months.
• She novates her lease to transfer it to a new tenant.
• The parties novate their agreement to reflect current market conditions.