Amortization \A*mor`ti*za"tion\, n. [LL. amortisatio, admortizatio. See Amortize, and cf. Admortization.]

1. (Law) The act or right of alienating lands to a corporation, which was considered formerly as transferring them to dead hands, or in mortmain.

2. The extinction of a debt, usually by means of a sinking fund; also, the money thus paid. --Simmonds.

Source: Webster's Revised Unabridged Dictionary (1913)