Which remedy gives the debtor the right to reclaim collateral by paying the debt?

• A. Replevin
• B. Strict foreclosure
• C. Foreclosure sale
• D. Redemption

Answer: (D)

Redemption is the remedy that lets the debtor reclaim collateral by paying what is owed. When a default occurs, the debtor can cure by paying the debt due, plus any interest, and reasonable costs, before the secured party disposes of the collateral (or enters into a sale contract). If the debtor pays this amount, the collateral is reinstated to the debtor, and the secured party cannot proceed with a sale on those terms. This concept exists to give the debtor a last chance to keep the property by satisfying the obligation.

Replevin is about recovering possession of property that’s been wrongfully withheld, not about paying off a debt to reclaim collateral. Strict foreclosure skips the sale step and gives the creditor title to the collateral after notice and a waiting period. Foreclosure sale is the process of selling the collateral to satisfy the debt. Since the question asks for the remedy that allows reclaiming by payment, redemption is the best fit.