Lossing
Discharge
Redemption is the payment of the secured claim by which a pledge or mortgage is extinguished.
Lossing is the juristic act whereby the debtor or a third party discharges the claim secured by a limited right, such as a pledge or hypothec. This payment extinguishes the security interest and releases the collateral.
The concept is relevant in the law of property and security interests, as it governs the termination of a limited right and precludes a creditor from asserting any further claim to the pledged asset or hypothec once the obligation has been performed.
In practice, lossing is commonly effected in connection with the sale of real property or the repayment of a loan secured by a hypothec, with the notary or bank arranging payment and procuring cancellation of the registration.
“Upon receipt of the purchase price, the notary arranged for the redemption of the mortgage on the sold property.”
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