Legal Dictionary
Main Entry:
re·deemPronunciation:
ri-'dEmFunction:
transitive verb 1 a : REPURCHASE b : to repurchase by right and not on the open market <
redeem preferred shares>
2 a : to free from a lien or pledge usually by payment of the amount secured thereby <
redeem collateral>
b : to exercise an equity of redemption in (real property) by payment in full of a mortgage debt after default but prior to a foreclosure becoming effective
redeem property prior to the actual sale under a judgment of foreclosure —Bowery Savings Bank v. Harbert Offset Corporation, 558 New York Supplement Reporter, Second Series 821 (1990)> —see also EQUITY OF REDEMPTION c : to exercise a right of redemption in (real property) within the period set by law by a repurchase that voids the effect of foreclosure or sale —see also
RIGHT OF REDEMPTION NOTE: A mortgagor with a right of redemption might redeem property within the set period following a foreclosure sale by paying the new purchaser the purchase price, interest, taxes, and lawful charges. d : to remove the obligation of by payment (as at maturity) <
redeem a bond>
3 a : to present and have redeemed
b : to exchange for something of value intransitive verb
: to redeem something (as real property)
redeem was therefore cut off —Hausman v. Dayton, 653 North Eastern Reporter, Second Series 1190 (1995)>