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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.)

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Under the proposed regulations, A would have a realized loss equal to the disappearing basis in the shares redeemed, but would not be able to recognize it until the earlier of the "final inclusion date" or the "accelerated loss inclusion date." The final inclusion date is a date after the distribution when the shareholder would first meet Sec.
Of those who do redeem their points, 23 per cent go on weekends away and 33 per cent swap them for goods such as TVs or camcorders.
and that if this unnamed relative doesn't redeem her, he will (3:12-13).
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.
Example 5: The facts are the same as in Example 4, except B has a primary and unconditional obligation to redeem S's shares.
According to Ally, the aggregate principal amount of redeemed notes, plus such portion of the interest that has accrued on a straight-line basis, is USD 9,773.07 for each USD 10,000.00 of accreted amount per note due at maturity, resulting in total proceeds due of approximately USD 536.2m.
84-135 held that a redeemed shareholder's right to receive payments under an unfunded pension agreement after the redemption relating to his pre-redemption employment with the corporation was not a prohibited interest under Sec.
The 2018 notes will be redeemed at what is currently estimated to be 104.206% of the principal amount of the 2018 notes, plus accrued and unpaid interest to the redemption date, while the 2020 notes will be redeemed at a currently estimated price that is 107.461% of the principal amount of the 2020 notes, plus accrued and unpaid interest to the redemption date.
1.302-2(c), which illustrates a proper adjustment when the entire amount received in redemption of the stock held by one spouse is treated as a dividend (because the redeemed spouse is treated as owning stock held by the other spouse).
Harris Corporation (NYSE:HRS), a communications and information technology company, on Friday exercised its option to fully redeem the outstanding USD300m principal of its 5% notes due 1 October 2015, as per the terms and the Indenture dated 3 September 2003 between it and the trustee the Bank of New York Mellon Trust Company NA, under which these notes were issued.
This possibility is extremely important if Basic redeems Bert's stock with a corporate note.
M2 EQUITYBITES-November 14, 2012-United Rentals redeems USD5m outstanding convertible senior notes due 2023(C)2012 M2 COMMUNICATIONS http://www.m2.com