After 10 days, what percentage do lien holders receive for a redeemed certificate with an amount between $200 and $5,000?

Study for the Tax Collection Exam with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

Multiple Choice

After 10 days, what percentage do lien holders receive for a redeemed certificate with an amount between $200 and $5,000?

Explanation:
When a tax lien certificate is redeemed, the holder gets a small premium based on how soon the redemption occurs and the size of the certificate. For certificates that fall between $200 and $5,000, the premium after the 10th day is 2%. This means the lien holder would receive 2% of the redemption value as an extra payout, not counting the principal that’s being redeemed. Higher premiums apply in other time frames or for different dollar ranges, but in this specific scenario the rate is 2%.

When a tax lien certificate is redeemed, the holder gets a small premium based on how soon the redemption occurs and the size of the certificate. For certificates that fall between $200 and $5,000, the premium after the 10th day is 2%. This means the lien holder would receive 2% of the redemption value as an extra payout, not counting the principal that’s being redeemed. Higher premiums apply in other time frames or for different dollar ranges, but in this specific scenario the rate is 2%.

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