Right of Redemption and Debtors’ Rights and Remedies
Learn about the right of redemption and debtors’ post-default rights and remedies.
This lesson is about the right of redemption and debtors’ rights and remedies post-default.
After default and repossession, a debtor may redeem the collateral. This means that the debtor pays off the loan in full and can reclaim its property. A secondary obligor, a subordinate secured party, or a lien holder may also have the right to redeem the collateral.
To redeem the collateral, the redeeming party must meet all of the existing obligations. UCC § 9-623, cmt. 2. This may...