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 provides a unique new service for retailers.
TripRewards members now can redeem points for free-night stays at participating Days Inn, Howard Johnson, Super 8 and Ramada hotels outside North America.
This can be accomplished by making sure the property settlement stipulates that the corporation will redeem the transferring spouse's stock and that the transfer is not on the nontransferring spouse's behalf.
Their divorce decree requires Tyler to redeem Donna's stock, which has a fair market value of $110,000 and a basis to her of $10,000.
In addition, the utility will redeem all of its outstanding $7.
Last week, Xerox said it will redeem on April 1 one million of the 2.
Initially, as of the gift's date, the partnership agreement precluded the receipt of any additional partnership interest in the second charity in the event the charity disagreed as to the amount that P would pay to redeem its interest.
Appalachian Power will redeem $500,000 principal amount of its 9-7/8% Series due 2020; $500,000 principal amount of its 9-1/8% Series due 2019; and $47,585,000 principal amount of its 8-3/4% Series due 2017, all at the special redemption price of 100% of their principal amount plus accrued interest to the date of redemption.
Through an exclusive partnership with Signature Days, an online provider of experience gifts across the country for every occasion, HHonors members can redeem points for a selected range of Experiences, from sky diving and hot-air balloon rides to private yoga lessons and wine tasting.
Care should be taken to ensure that the acquiring corporation does not indirectly provide the consideration provided by the target to redeem target stock or make distributions on it; see Waterman S.
21 /PRNewswire/ -- Indiana Michigan Power Company today announced that it will redeem on March 25 the entire outstanding $100,000,000 of its 8-3/4% Series of first mortgage bonds due 2017.
All of the Debentures are owned by Hanover Compressor Capital Trust (the "Trust") and the Trust is required to use the proceeds received from such redemption to redeem $29,000,000 aggregate liquidation amount of its 7 i% Convertible Preferred Securities (CUSIP NO.