Generally, the contractual repayment (amortization; payoff) of a debt expressed in monetary terms (the complete repayment of loan principal, interest and any other sums due; payoff occurs either over the scheduled full term of the loan, or through one or more prepayments). – The individual installments of a larger amount are still usually called instalments (instal[l]ment), and in older literature often partial payments. – A debt security issued in paper form is legally considered to have been redeemed when it is – finally withdrawn from circulation, – declared invalid, cancelled, destroyed or – handed to a trustee for destruction. – See amortization, bond, annuity bond, draw, effective interest, loan, bullet, fixed maturity, fund amortization, close-out, call, early, annuity bond, redemption, early, balance payment, interest, prepayment risk, prepayment indemnity, payment, interim interest. – Cf. the Deutsche Bundesbank’s monthly statistical supplement “Capital Market Statistics” on redemption of securities, broken down by security type and maturity.
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