Redemption Definition

GLOSSARY

Published by a ��˾��ҹ�� Banking & Finance expert

What does Redemption mean?

The repayment by the borrower of outstanding loan obligations upon the agreed terms with the effect of extinguishing the debt

View the related checklists about Redemption

GAAR guidance: examples of non-abusive transactions—checklist

GAAR guidance: examples of non-abusive transactions—checklist The GAAR guidance aims to help interpret and apply the general anti-abuse rule (GAAR). This is why the GAAR guidance includes in Part D various examples to illustrate the types of arrangements HMRC considers should escape the GAAR and those which it considers should be caught by the GAAR. The current version of the GAAR guidance, as well as previous versions of the guidance, are available online (see: GAAR guidance). Part D of the GAAR guidance (which is dated 11 September 2020) contains the majority of the illustrative examples, but some are found in other parts of the guidance too. For ease of reference, the table in this Checklist: • pulls together • in one place • a list of the arrangements: ◦ referred to in any part of the GAAR guidance ◦ in respect of which HMRC has indicated it would not pursue counteraction under the GAAR (although note that much of the legislation underlying the examples has changed since the examples were...

Using IP as security: key issues—checklist

Using IP as security: key issues—checklist This Checklist is drafted from the lender’s perspective, and it is designed to highlight the key issues to consider and steps to follow when using IP as security, such as to: • consider the nature of the IP right • consider the type of security • consider ownership, duration, and third-party rights • consider validity and maintenance of the right • value the IP right • consider associated rights and property • register the security at the appropriate registry For further information on taking or perfecting security over IP, see: • Practice Notes: Taking security over intellectual property rights, Taking security over intellectual property—practical points, Perfecting security over intellectual property rights and registering security at an intellectual property registry and Effect of registering security at IP registries on priority of security interests • Precedents: Assignment of intellectual property by way of security, Agreement for assignment of patent by way of security in pursuance of loan agreement: Encyclopaedia of Forms and Precedents (21(1)) [1172], Mortgage...

Redemption of shares—private company (with payment out of capital)—flowchart

Redemption of shares—private company (with payment out of

Terms and conditions—first time issuer's negotiation checklist

Terms and conditions—first time issuer's negotiation checklist What this checklist covers This checklist outlines the key points that a lawyer advising a first time issuer should check and, if necessary, seek to amend when reviewing English law terms and conditions for an issue of debt securities. This checklist contains material relevant to: • secured and unsecured debt securities • debt securities constituted by a trust deed, and • debt securities issued without trust deeds, such as: ◦ debt securities issued under a fiscal agency structure—for information on fiscal agents, see Practice Note: Role of a fiscal agent, and ◦ debt securities constituted by an instrument executed by the issuer (and guarantor, if applicable) without a trustee, of the kind used in issues of mini-bonds (a bond instrument) This checklist should be read together with Practice Note: Terms and conditions—first time issuer's guide, which: • explains the practical aspects of the key individual provisions (conditions) usually found in the terms and conditions of debt securities • compares them with the...

Discover our 454 Practice Notes on Redemption

Return of capital provisions—articles—private equity or venture capital

Return of capital provisions—articles—private equity or venture capital Insert the following as new definitions (if not already included) in the articles of association of the relevant company: A Ordinary Shares • means the A ordinary shares of [insert amount]p each in the capital of the Company; Available Profits • means profits available for distribution within the meaning of the Companies Act; B Ordinary Shares • means the B ordinary shares of [insert amount]p each in the capital of the Company; Issue Price • means the price at which the relevant Share is issued, being the aggregate of the amount paid up or credited as paid up in respect of the nominal value thereof and any share premium thereon; Preference Dividend • means the dividend payable pursuant to Article [insert number of article dealing with company dividend payments]; Preference Shares • means the cumulative redeemable preference shares of [insert amount]p each in the capital of the Company; Sale • means the...

Directors’ statement—payment out of capital for a redemption of shares

Directors’ statement—payment out of capital for a redemption of shares Company number: [insert number] [insert company name] Limited Payment out of capital to redeem shares in the company Directors’ statement We, the undersigned, [enter name of director] of [enter address] [enter name of director] of [enter address] [enter name of director] of [enter address] being all the directors for the time being of the Company, hereby state in accordance with section 714 of the Companies Act 2006 that the amount of the permissible capital payment for [insert number] [redeemable] shares of £[insert nominal value] proposed in the [Notice of General Meeting dated [insert date] OR Written Resolution dated [insert date]] to be redeemed by the Company is £[insert amount]. We also confirm that, having made full inquiry into the affairs and prospects of the Company, we have formed the opinion: 1 as regards the Company’s initial situation immediately following the date on which the payment out of capital is proposed to be made, that there...

Dive into our 126 Precedents related to Redemption

What is the position of a security holder if the company that created the security is dissolved?

What is the position of a security holder if the company that created the security is dissolved? This Q&A focuses on the impact the dissolution of a security provider can have on the ability of a security holder to effectively enforce its security. It also considers the position of a receiver appointed by the security holder prior to the dissolution of the relevant company. Summary If a security provider is dissolved as a matter of English law it is normally still possible for the security holder to enforce the security it holds by exercising the mortgagee’s power of sale. There may be circumstances in any particular case that make an application to restore the dissolved company to the register desirable to protect the security holder’s position. Circumstances where this issue commonly arises The problems associated with a security provider being dissolved while security is in force occur most often in real estate finance and other asset finance transactions. Typically, these issues arise where a special purpose...

Company X has a first legal charge secured against a property. The second legal charge holder is in the process of issuing possession proceedings. If the second charge holder successfully obtains possession order, how will this effect Company X’s first legal charge? For example, will the second charge holder need to pay Company X before they can do anything with the property, ie sell the property?

Company X has a first legal charge secured against a property. The second legal charge holder is in the process of issuing possession proceedings. If the second charge holder successfully obtains possession order, how will this effect Company X’s first legal charge? For example, will the second charge holder need to pay Company X before they can do anything with the property, ie sell the property? In answering this Q&A, we have assumed that there is no inter-creditor agreement as between the first and second legal charge holders: such that no contract exists which sets out any obligations that the second legal charge holder may have in the event that it enters into possession in circumstances whereby the first legal charge remains unsatisfied. Entry into possession of the property by the second charge holder does not affect the first legal charge holder’s priority, such that its interest in the equity of redemption falls to be settled before the interest of the second charge holder. Further, entry into...

See the 97 Q&As about Redemption

What comprises an ‘unregistered company’ under section 220(1) of the Insolvency Act 1986? (East Riding of Yorkshire Council v KMG)

Restructuring & Insolvency analysis: KMG (the Fund) is an investment fund located in and subject to the laws of Luxembourg. The Fund offers the opportunity to invest in dedicated sub-funds. KMG SICAV-GB Strategic Land Fund (the Sub-Fund) was such a sub-fund, concerned in investing in the UK property market. The petitioner is a local council, acting in its capacity as administrator of a pension fund. The petitioner invested in the Sub-Fund. The Sub-Fund was liquidated in Luxembourg. The petitioner presented a petition to wind up th e Sub-Fund (the Petition) pursuant to sections 220 and 221 of the Insolvency Act 1986 (IA 1986), asserting that (i) the Sub-Fund was an unregistered company within the meaning of IA 1986, s 220(1), (ii) it had standing to present the Petition as a contingent creditor; and (iii) the court ought to exercise its discretion to wind up the Sub-Fund. In a judgment handed down in May 2024 (East Riding of Yorkshire Council as administrating authority of the East Riding Pension Fund v KMG...

EU AIFMD II: ESMA consults on draft RTS for open-ended loan originating AIFs

The European Securities and Markets Authority (ESMA) has published a consultation paper on draft regulatory technical standards (RTS) for open-ended loan originating (LO) alternative investment funds (AIFs) under the revised Alternative Investment Fund Managers Directive (EU) 2024/927 (AIFMD II). Responses are sought by 12 March 2025. ESMA expects to publish a final report and submit the draft RTS to the European Commission by Q3/Q4 2025.

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GLOSSARY