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Simple English definitions for legal terms
license in amortization
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A quick definition of license in amortization:
A license in amortization is a legal document that allows the transfer of property that would otherwise be invalid under the laws of mortmain. Mortmain is a term used to describe the condition of lands or tenements held in perpetuity by an ecclesiastical or other corporation. This means that the property cannot be sold or inherited, but a license in amortization allows for the transfer of the property. It is important to note that a corporation does not die, so the property will never escheat or pass by inheritance, and no inheritance taxes will ever be paid.
A more thorough explanation:
Definition: A license that allows the transfer of property that would otherwise be invalid under the laws of mortmain. Mortmain refers to the condition of lands or tenements held in perpetuity by an ecclesiastical or other corporation.
Example: Let's say a church wants to sell a piece of land that it owns. However, under the laws of mortmain, the church is not allowed to transfer the land to another party. In this case, the church can obtain a license in amortization, which would allow them to sell the land to a buyer.
This license is important because it allows organizations like churches to sell their property and use the proceeds for other purposes. Without this license, the property would be tied up in perpetuity and could not be sold or transferred.