Legal Definitions - strip

Definition: STRIP refers to two different things:

1. The act of separating and selling a bond's coupons and corpus separately.
2. The act of a tenant who, holding less than the entire fee in land, spoils or unlawfully takes something from the land.

Example 1: When a bond is issued, it comes with regular interest payments (coupons) and a final payment of the principal amount at maturity. However, investors can choose to separate these two components and sell them separately. This process is called STRIP or Separate Trading of Registered Interest and Principal of Securities.

Example 2: Let's say a tenant rents a house but only has access to the backyard. If the tenant goes into the front yard without permission and takes flowers from the garden, that would be an example of STRIP in the context of landlord-tenant law.

Both examples illustrate the concept of STRIP, which involves separating something into its component parts and dealing with them separately. In the case of bonds, investors can separate the interest payments from the principal amount and trade them separately. In the case of landlord-tenant law, a tenant with limited access to land takes something that they are not entitled to, separating it from the rest of the property.