Redemption Law and Legal Definition
Redemption in legal terminology refers to a seller's right to repurchase something sold by returning the purchase price to the buyer. It is often used in the context of sales of municipal bonds, shares of stock in a corporation, or foreclosures on real property, where the owner buys back property by paying off a loan, interest and any costs of foreclosure.
An example of a state statute providing for redemption of bonds is worded as follows:
"Such bonds may be made subject to redemption prior to their respective maturities, at the option of the state, on such terms and conditions as shall be provided by the board of directors of said authority in the resolution authorizing the issuance of such series. Any or all of such bonds subject to redemption at the option of the state may be called for redemption by the authority pursuant to a resolution adopted by the board of directors thereof if pursuant to appropriations theretofore made by the Legislature, the moneys required for such redemption are at the time held in the State Treasury or if such redemption is to be effected with moneys provided by the sale and issuance of refunding bonds issued pursuant to Amendment 618 and as provided for in this article."
