redeem


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Redemption

1. In bonds, the act of an issuer repurchasing a bond at or before maturity. Redemption is made at the face value of the bond unless it occurs before maturity, in which case the bond is bought back at a premium to compensate for lost interest. The issuer has the right to redeem the bond at any time, although the earlier the redemption take place, the higher the premium usually is. This provides an incentive for companies to do this as rarely as possible.

2. The act of the issuing company repurchasing stocks or mutual funds. In the case of mutual funds, the repurchase is made at net asset value per share. Stocks may be redeemed in cash or by proration. See also: Proratable factor.

redeem

(1) In mortgages, to cure a default by paying all past-due sums and penalties after receiving notice of default, but before acceleration. (2) To exercise the post-foreclosure right of redemption, if allowed. (3) Under federal law, the IRS has 120 days after foreclosure to purchase property on which it had a lien—to redeem the property. (It rarely does this,and would only do so if it believed it could sell the property at a profit large enough to justify the time and trouble.)

References in periodicals archive ?
El Assi said: Redeem is proud of its world-beating experience in the field of mobile phone recommerce and recycling.
IN CASES INVOLVING DIVORCING SPOUSES WHO OWN closely held corporations, the courts have had conflicting opinions about the tax consequences to the spouses if the corporation, or one spouse, redeems the other's stock.
Under sections 351(g)(2)(A)(ii) and (iii), preferred stock is NQPS if the issuer or a related person is either required or has the right but not the obligation to redeem or purchase the stock, and, as of the issue date, it is more likely than not that such right will be exercised.
to redeem B's stock subsequent to the property division by giving him a note in payment.
Arguably, even if the funds used to redeem T's 75% stock interest were borrowed by T, the COI requirement would be satisfied if T used its own funds to repay the debt.
HHonors members can redeem points for rentals and tour packages from EagleRider, or redeem points for lift tickets at nine of Intrawest's mountain resorts in the U.
This might be achieved if the spouses simply agreed that the corporation would redeem one spouse's stock in a complete termination under Sec.
Assume that Basic will redeem 300 shares from Bert.
The IRS noted that although the FHLB had discretion regarding whether to redeem the member's stock, it had established a policy to honor all redemption requests.
303, distributions in redemption of stock to pay death taxes, allows an estate that owns stock or beneficiaries who inherit stock to redeem shares with minimal (if any) income tax ramifications; such a transaction may be necessary to generate cash to pay certain death taxes and estate expenses.
will redeem such unconverted Convertible Notes solely with cash from Elan's consummated senior notes offering.
The number of repurchased shares may decrease if employees redeem their options, which would increase the total redemption price.