In Lieu of This Meaning – Definition and Significance
It is a frequent phrase used in business and finance, as well as non-commercial English, to refer to anything that replaces or substitutes something else. For example, if a restaurant runs out of celery, carrots, and onions, it may substitute tomato soup for minestrone soup.
In a basic commercial setting, the word may be used as follows: ‘He offered me an IOU in place of cash.’
In lieu of may also indicate ‘in light of,’ as in ‘In light of recent occurrences, more vigilance is required.’ Despite the fact that the phrase is used in this context, linguists believe it is an example of the word ‘in place of’ being used wrongly.
In Lieu Of was derived from the Latin term ‘locus,’ which means’ place,’ through French.
‘In lieu of’ is a hybrid term that meaning ‘in lieu of’ and is derived from the Latin word locus, which means ‘place’ – it is largely translated from the present French phrase au lieu.
In Lieu Of Foreclosure Deed (in lieu of this meaning)
A ‘deed in lieu of foreclosure’ is a possible alternative for a mortgagor (borrower) to avoid foreclosure in which the mortgagor transfers the collateral property, such as a house, back to the mortgagee (lender) in return for the discharge of all mortgage obligations. Both the lender and the borrower must freely and in good faith agree.
When a loan is in default – the borrower is unable to keep up with his or her mortgage payments – a deed in lieu of foreclosure is a feasible alternative to avoid foreclosure proceedings.
Both the mortgagor and the mortgagee benefit from the deed in lieu of foreclosure. The borrower is instantly relieved from all personal debts linked to the defaulted loan, avoids the public disgrace of a foreclosure action, may obtain better conditions than in a formal foreclosure, and his or her credit report is not adversely damaged.
“[Acceptance in Lieu] permits taxpayers to transfer major pieces of art and historical artefacts into public ownership while paying Inheritance Tax,” according to Arts Council England. If an offer is accepted, the taxpayer receives the item’s full open market value. The competent minister then assigns the piece to a public museum, archive, or library.” (Image courtesy of artscouncil.org.uk)
It is easier and less expensive for the lender than going through a repossession, and it decreases the possibility of borrower retaliation (borrower damages the property before being evicted).
Acceptance as a substitute
Acceptance in lieu is a tax policy in the United Kingdom that allows inheritance tax arrears to be waived off in exchange for the purchase of objects of national significance or heritage.
Acceptance in lieu was introduced by Chancellor of the Exchequer David Lloyd George in 1909 as a mechanism for rich persons to pay the extra inheritance taxes imposed by his People’s Budget.
Today, national treasures such as rural estates, works of art, antiquities, and archival material are either gathered and donated to museums or the National Trust. Arts Council England oversees the project. The initiative has resulted in the placement of hundreds of items of art, antiques, residences, and other collections in publicly accessible institutions rather to auction.
When describing the concept of ‘lieu,’ Cambridge Dictionaries Online offers this system as one of its examples: “The Duke of Norfolk gave the artworks to the country in lieu of inheritance taxes.”
When an obituary states ‘in lieu of flowers,’ it signifies that the bereaved family prefers that people make a donation to a charity instead of sending them flowers.