Before 2005, Eppler says, it was industry standard for the defeasance provider to keep all this money. Slowly, though, this practice is changing and more defeasance consultants are sharing the residual value. One company, Waterstone Capital Advisors of Charlotte, NC, advertises its willingness to share the residual value with clients on its website. Another provider, Eppler adds, will do so if asked.

John Hosmer, president and CEO of Commercial Defeasance LLC in Charlotte, NC, the largest provider of defeasance services in the industry, says his company would consider such a transaction, although it has yet to be asked. Hosmer, though, is uncertain whether the benefits to the borrower outweigh the potential drawbacks.

"We have some misgivings," he says. For starters, servicers and rating agencies have not fully vetted this process. More significantly, it could have adverse tax ramifications for the borrower, he says.

The defeasance provider is entering into a de facto partnership with the borrower in which the borrower has claim to a continuing benefit and return on the proceeds from the securities. Instead of transferring the securities to the successor borrower, the original borrower would have to keep the securities on its books and file tax returns that reflect this sharing arrangement. In the event that the borrower declares bankruptcy, the court is likely to want to bring those securities into the bankruptcy estate, thus negating the benefits of setting up a special purpose vehicle for the transaction in the first place. "This is an issue about which we would want the borrower to be fully apprised," Hosmer says.