1. The act or an instance of reclaiming or regaining possession by paying a specific price. [Cases: Secured Transactions 241. C.J.S. Secured Transactions § 184.]
2. Bankruptcy. A debtor’s right to repurchase property from a buyer who obtained the property at a forced sale initiated by a creditor. [Cases: Bankruptcy 3034. C.J.S. Bankruptcy §§ 111–112.]
3. Securities. The reacquisition of a security by the issuer. • Redemption usu. refers to the repurchase of a bond before maturity, but it may also refer to the repurchase of stock and mutual-fund shares.
— Also termed (in reference to stock) stock redemption; stock repurchase. [Cases: Corporations 82, 376, 468.
1. C.J.S. Corporations §§ 180–181, 193–195, 561–563.]
4. Property. The payment of a defaulted mortgage debt by a borrower who does not want to lose the property. See EQUITY OF REDEMPTION. [Cases: Mortgages 591–624. C.J.S. Mortgages §§ 57–61, 66–67, 565, 991–1090, 1092–1093.] — redeemable, redemptive, redemptionaladj. — redeem, vb.
statutory redemption. The statutory right of a defaulting mortgagor to recover property, within a specified period, after a foreclosure or tax sale, by paying the outstanding debt or charges. • The purpose is to protect against the sale of property at a price far less than its value. See REDEMPTION PERIOD. [Cases: Mortgages 592. C.J.S. Mortgages §§ 1001–1002.]
tax redemption. A taxpayer’s recovery of property taken for nonpayment of taxes, accomplished by paying the delinquent taxes and any interest, costs, and penalties. [Cases: Taxation 695, 725. C.J.S. Taxation §§ 1242, 1346–1351.]
