Redeem - sustany/dvg GitHub Wiki

Redeem has multiple definitions:

  • In bankruptcy, the debtor�s right to repurchase property they previously owned but another acquired in a forced sale by a creditor. 11 U.S.C. � 722 lays out the process through which a debtor may redeem property, stating: �[a]n individual debtor may. . . redeem tangible personal property intended primarily for personal, family, or household use, from a lien securing a dischargeable consumer debt, if such property is [dischargeable under � 522] of this title or has been abandoned [under � 554]. . . by paying the holder of such lien the amount of the allowed secured claim of such holder that is secured by such lien in full at the time of redemption.�
  • In securities law, the repayment of a fixed-income security (e.g. bond) at or before the maturity date. For example, a corporation issues a corporate bond with 5% interest annually with a principal of $1,000. They issue the bond on January 1st, 2020, and its maturity date is January 1st, 2030. If a holder of the bond wants to discharge the corporation from their obligation to pay 5% annual interest and repayment of the $1,000 principal on January 1st, 2030 in return for a lump sum payment, he may redeem the bond. The redeeming holder also generally receives more than the bond�s nominal principle, or par value, since they are foregoing their right to receive additional future interest payments.
  • In real property law, the debtor�s payment on a defaulted mortgage after foreclosure so that the debtor can eventually regain possession of their property. Some states give the debtor a certain amount of time to redeem the property after foreclosure. In California, for example, Code Civil Proc. � 729.030 allows a debtor to redeem their property after foreclosure under two circumstances:
    • �[t]hree months after the date of sale if the proceeds of the sale are sufficient to satisfy the secured indebtedness with interest and costs of action and of sale; or
    • [o]ne year after the date of sale if the proceeds of the sale are not sufficient to satisfy the secured indebtedness with interest and costs of action and of sale.�