+0
obligation
1: the action of obligating oneself to a course of action (as by a promise or vow) 2 a: something (as a formal contract, a promise, or the demands of conscience or custom) that obligates one to a course of action b: a debt security (as a mortgage or corporate bond) c: a commitment (as by a government) to pay a particular sum of money; also: an amount owed under such an obligation <unable to meet its obligations, the company went into bankruptcy> 3 a: a condition or feeling of being obligated b: a debt of gratitude 4: something one is bound to do: duty, responsibility
[M-W's Col. Dic.]

I couldn't understand the bold parts.

redeem
1 a: to buy back: repurchase b: to get or win back 2: to free from what distresses or harms: as a: to free from captivity by payment of ransom b: to extricate from or help to overcome something detrimental c: to release from blame or debt: clear d: to free from the consequences of sin 3: to change for the better: reform 4: repair, restore 5 a: to free from a lien by payment of an amount secured thereby b (1): to remove the obligation of by payment <the United States Treasury redeems savings bonds on demand> (2): to exchange for something of value <redeem trading stamps> c: to make good: fulfill6 a: to atone for : expiate <redeem an error> b (1): to offset the bad effect of (2): to make worthwhile: retrieve
[M-W's Col. Dic.]

What does secured thereby mean?
Comments  
First, try looking up the words "security" and "secure" — they have special financial/legal meanings.

«a commitment (as by a government) to pay a particular sum of money»
What troubles you here?

«a: to free from a lien by payment of an amount secured thereby»
Now that you know the meaning of "secured", what's not clear? Thereby = there by = by the lien
You and I make a bet on the election. You win, but I don't have any money. I still have an obligation to pay you. You agree to accept my I.O.U. I write "IOU $100" on a piece of paper and sign my name to it. You could say that's like a bond certificate. (You could probably sell it to somebody else for fifty bucks.)

You keep bugging me about it, so I decide to buy my paper back from you. (I give you $105 dollars because I like you.) I just redeemed my IOU.

This was an unsecured obligation. Suppose you hadn't trusted me and had refused to let me leave without paying. So I let you hold my camera as security. Then, when I paid you the $100, you gave me back my camera. I redeemed my camera.

If it was thousands of dollars, I'd have to put up my house as security instead of my camera. But you wouldn't necessarily make me move out. We could make a legal agreement that if I didn't pay you by a certain time the house would become legally yours. You'd have a lien on my house, at least for the amount I owed. The thousands I owe you are now secured by my house. "Look at my house! Your money is secured thereby." I can free my house of the lien by paying you.

- A.
Teachers: We supply a list of EFL job vacancies
AvangiYou and I make a bet on the election. You win, but I don't have any money. I still have an obligation to pay you. You agree to accept my I.O.U. I write "IOU $100" on a piece of paper and sign my name to it. You could say that's like a bond certificate. (You could probably sell it to somebody else for fifty bucks.)

You keep bugging me about it, so I decide to buy my paper back from you. (I give you $105 dollars because I like you.) I just redeemed my IOU.

This was an unsecured obligation. Suppose you hadn't trusted me and had refused to let me leave without paying. So I let you hold my camera as security. Then, when I paid you the $100, you gave me back my camera. I redeemed my camera.

If it was thousands of dollars, I'd have to put up my house as security instead of my camera. But you wouldn't necessarily make me move out. We could make a legal agreement that if I didn't pay you by a certain time the house would become legally yours. You'd have a lien on my house, at least for the amount I owed. The thousands I owe you are now secured by my house. "Look at my house! Your money is secured thereby." I can free my house of the lien by paying you.

- A.
What a wonderful explanation! Avangi, I must say you always come up with such understandable explanations. Thanks a lot, buddy.

I noticed that article ''a'' is missing in front of security. Was there a reason for that? Or, is it just that you were writing in some hurry?
Thanks for the kind words, Jackson,

Security in this sense is an uncountable. In the countable sense, a bond world be a security. Its a piece of paper which represents an obligation, and it may be bought and sold.

In the US, the buying and selling of securities is regulated by the SEC, the Securities and Exchange Commission.

Best regards, - A.
Okay, I get it now. Avangi, May I ask you another question?Emotion: embarrassed Why is it an uncountable noun?

What does a bond world be a security mean?
Site Hint: Check out our list of pronunciation videos.
Hi Jackson,

Security in the most common, general sense, is an uncountable. it's the "stuff" that makes you safe and protected. It's the condition of being secure.

When I go away for a week, I worry about my family's security. Will they be safe?

Make sure you tie the robbers up securely so they can't get away.

I also worry about my family's financial security after I die. Will they be able to pay the bills? Will their money be safe, solid, secure, protected?

When I say, "You can hold my camera as security," it could work either way. I could say "as a security." I mean "as safety, in case you don't pay me." (uncountable) or "as a safety, in case you don't pay me." (countable) But in this case we typically use the uncountable.

In the countable sense, "a security" is usually a piece of paper. In the old days in the US, a dollar bill was "a security." It was a piece of paper which said if you returned it to the government, they'd give you one dollar's worth of silver.

Stocks and bonds and T-bills etc. are securities. You loan your money to a company or the government or a bank and they give you a piece of paper saying they promise to give you back the money plus interest. Most of them are "negotiable," which means you can trade them on the stock exchange, hopefully getting more than you paid for them.

- A.
Thank you, Avangi.