After 10 days, what percentage do lien holders receive for a redeemed certificate with an amount over $10,000?

• A. 2%
• B. 4%
• C. 6%
• D. 8%

Answer: (C)

Lien holders are paid interest when a tax lien certificate is redeemed, and the rate depends on how long the redemption takes and how large the certificate is. After ten days, for a redeemed certificate with a face value over $10,000, the specified return is six percent. This tiered structure gives investors a defined reward for larger redemptions, while still adjusting the payoff based on the timing of the redemption. Smaller certificates or earlier redemption windows are associated with different percentages, such as two percent, four percent, or eight percent, depending on the exact rules. So, for a certificate over $10,000 redeemed after the ten-day period, six percent is the correct rate.