Redemption-Exchange Law and Legal Definition

According to 31 CFR 306.2 [Title 31 -- Money and Finance: Treasury; Subtitle B -- Regulations Relating to Money and Finance; Chapter II -- Fiscal Service, Department of the Treasury; Subchapter B -- Bureau of the Public Debt; Part 306 -- General Regulations Governing U.S. Securities; Subpart A -- General Information], redemption-exchange is “any authorized redemption of securities for the purpose of applying the proceeds in payment for other securities offered in exchange.”