Also known as: redeem · redeems · redeemed · redeeming · redemptions · redemptioner · redemptioners · redemptor · buy back
Written by attorneys · grounded in primary & secondary sources — see below
4 senses
A mortgagor's right to reclaim real property pledged as security by paying the underlying debt before foreclosure cuts off that interest.
A mortgagor's right to reclaim real property pledged as security by paying the underlying debt before foreclosure cuts off that interest.
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A mortgagor's or junior lienholder's right to recover property after a foreclosure sale by paying the sale price plus costs within a prescribed statutory period.
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A debtor's or secondary obligor's right to reclaim collateral by tendering full payment of the secured obligations plus allowable fees before the secured party disposes of the collateral or retains it in satisfaction of the debt.
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A corporation's reacquisition of its own outstanding shares, which removes them from the pool of outstanding shares until reissued, cancelled, or held as treasury stock.
Select any source to read its text and confirm it supports the definition.
A mortgagor's or junior lienholder's right to recover property after a foreclosure sale by paying the sale price plus costs within a prescribed statutory period.
A debtor's or secondary obligor's right to reclaim collateral by tendering full payment of the secured obligations plus allowable fees before the secured party disposes of the collateral or retains it in satisfaction of the debt.
A corporation's reacquisition of its own outstanding shares, which removes them from the pool of outstanding shares until reissued, cancelled, or held as treasury stock.
Each sense below has its own examples, sources, and questions.
Rajesh Rao borrowed funds from Riverfront Developments to purchase a warehouse and executed a mortgage pledging the property as collateral. When Rao missed several payments, Riverfront Developments initiated foreclosure proceedings. Rao retained possession of the warehouse and the right to reclaim it by satisfying the debt before the foreclosure sale concluded.
Roberto Reyes granted a security interest in an automobile located in State Y to a lender in State X. States X and Y maintained identical rules governing a debtor's right of redemption. The court treated the contacts as though they were grouped in a single state when determining which law governed the redemption issue.
Renata Russo executed a mortgage on Blackacre in a title-theory jurisdiction. The mortgagee held legal title while Russo retained only the equity of redemption. Upon default the mortgagee could foreclose without first obtaining possession from Russo.
Riverside Healthcare granted a mortgage on its clinic to secure a construction loan. After default the mortgagee conducted a judicial foreclosure sale. The sale terminated Riverside Healthcare's equity of redemption, transferring clear title to the purchaser subject only to any statutory redemption period.
Yes. Under the title theory the mortgagee holds legal title and the mortgagor possesses only the equity of redemption, which affects rights to possession, rents, and foreclosure procedure.
Supporting sources
The equity of redemption allows the mortgagor to pay the debt and reclaim the property before a foreclosure sale occurs. Statutory redemption, available only in some states, permits redemption after the foreclosure sale by paying the sale price plus interest and costs within a statutory window.
Supporting sources
Rita Russell granted a security interest in her manufacturing equipment to Reliance Insurance to secure a loan. After default, Reliance repossessed the equipment and prepared to sell it at auction. Russell tendered the full amount of the secured obligation plus reasonable expenses, thereby reclaiming the equipment before the sale occurred.
A debtor, any secondary obligor, or any other secured party or lienholder may redeem the collateral by tendering fulfillment of all secured obligations plus reasonable expenses before disposition or strict foreclosure.
Supporting sources
The right ends when the secured party disposes of the collateral, enters into a contract for disposition, or retains the collateral in full or partial satisfaction of the obligation.
Supporting sources
Riley Rivera and Rachel Ramirez formed Ridgeway Partners. After Rivera decided to retire, the board authorized the corporation to repurchase all of Rivera's shares at fair market value. The reacquired shares became authorized but unissued stock available for later reissuance.
Redeemed shares cease to be outstanding until reissued or cancelled. The articles of incorporation determine whether reacquired shares reduce the number of authorized shares or are held as treasury stock available for reissuance.
Supporting sources
…Butler joined. Syllabus The Minnesota Mortgage Moratorium Law, which authorized the state courts to extend the period of redemption from foreclosure sales for a limited time during the economic emergency of the Great Depression, did not violate the Contracts Clause of the Federal Constitution (Art. I, § 10), as the…