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 ?
bank) by post to the registered address of the Redeeming Shareholder
The proposed regulations define "accelerated inclusion date" as a date (other than the final inclusion date) on which the redeemed shareholder must take into account gain on an actual or deemed stock sale or exchange of redeeming corporate stock.
Being named a trustee of a trust, or executor of an estate, holding voting stock of the redeeming corporation, provided such interest (the right to vote the stock) arises from the terms of a decedent's will.
A taxpayer-wife did not have to recognize the gain realized when, pursuant to a divorce decree, a corporation redeemed her 50% interest and issued additional stock (equal to the same number of shares redeemed) to the other 50% owner, her ex-husband, even though the wife transferred the shares redeemed directly to the redeeming corporation.
If the gift check is redeemed at another Beef 'O' Brady's location, the funds are transferred from the issuing franchisee's bank account into the redeeming franchisee's bank account, via the Federal Banking System, just like a check.
The purchase of stock in a family-owned corporation by another related corporation resulted in denial of exchange treatment to a redeeming trust in Rev.
By redeeming this stock, the Company has eliminated the potential ownership dilution to the public shareholders that could have occurred upon conversion of the preferred stock.
This may occur if any of the estate's beneficiaries continue to hold the redeeming corporation's stock after the redemption.
Redeeming or exchanging shares of the Fund prior to the maturity date is at the Fund's then-current net asset value, which may be less than your initial investment.
Visa Extras was designed to help address these needs of small business owners in both earning points and redeeming their points for meaningful rewards.
Jim Jacobson, President of Christian Freedom International, an international Christian aid organization, renews his challenge to anyone who supports redeeming slaves to "end slavery, not buy slaves" in Sudan.
This year, Hilton HHonors(R) members can make their holiday cash go further by redeeming their HHonors points for gifts for everyone on their lists.