- redemption
- The realization of a right to have the title of property restored free and clear of the mortgage; performance of the mortgage obligation being essential for that purpose. The right of a debtor, and sometimes of a debtor's other creditors, to repurchase from a buyer at a forced sale property of the debtor that was seized and sold in satisfaction of a judgment or other claim against the debtor, which right usually is limited to forced sales of real property.Also, a bankruptcy term for extinguishing a lien on exempt property by making a cash payment equal to the value of the property. The reacquisition of a security by the issuer pursuant to a provision in the security that specifies the terms on which the reacquisition may take place.A security is called for redemption when the issuer notifies the holder that the redemption privilege has been exercised. Typically, a holder of a security that has been called for redemption will have a limited period thereafter to decide whether or not to exercise a conversion right, if one exists. A repurchase; a buying back.The act of a vendor of property in buying it back again from the purchaser at the same or an enhanced price. The process of annulling and revoking a conditional sale of property, by performance of the conditions on which it was stipulated to be revocable. The process of cancelling and annulling a defeasible title to land, such as is created by a mortgage or a tax-sale, by paying the debt or fulfilling the other conditions. The liberation of an estate from a mortgage. Webb v. Williamson, 202 Ark. 763, 152 S.W.2d 312, 314.The liberation of a chattel from pledge or pawn, by paying the debt for which it stood as security.Repurchase of notes, bonds, stock, bills, or other evidences of debt, by paying their value to their holders.The payment of principal and unpaid interest on bonds or other debt obligations.Repurchase by corporation of its shares at a price equal to the net asset value of the shares on date a redemption request is received by the corporation. Kreis v. Mates Inv. Fund, Inc., D.C.Mo., 335 F.Supp. 1299, 1302.See also stock (stock redemption).See also certificate of redemption- equity of redemption- right of redemption
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.
