Due bill redemption is the step that closes out the obligations created during a due bill period in United States securities markets. During that period, shares are sold with the right to a distribution, but the issuer pays the holder on the record date, who may already have sold. Each such trade carries a due bill in favour of the buyer. On the due bill redemption date, set by the exchange shortly after the payment date in line with the settlement cycle, those due bills are honoured: the cash or securities move from the seller's side to the buyer's side.
In practice investors rarely see the process. The central depository tracks positions affected by due bills and, on the redemption date, debits the participants that received the distribution and credits those owed it. Brokers then adjust client accounts. Operations teams check the adjustments as part of corporate action reconciliation, pursuing any remainder through corporate action claims processing.