wadset

a written deed which transferred land to another a security for, or in satisfaction of, a debt due to him by the granter of the deed, with a reserved power to the granter (called the reverser) to redeem his lands from the lender of the money (called the wadsetter) when his debt was repaid or his obligation fulfilled.  It was the usual dodge adopted by those who needed to borrow money at the time when the Church was very much against the idea of lending money at interest, and it came in two types.  The ‘proper wadset’ allowed the wadsetter (lender) to enjoy the yearly profits of the land as his interest until his money was repaid and the lands redeemed, and if these were lower than the accepted rate of interest, it was just too bad; on the other hand, he might end up in profit.  The ‘improper wadset’ cut out this element of risk to the lender; if the profits of the land for the year were less than the interest due, he could recover the deficit from the debtor, but if they came to more than the interest he was bound to account for this surplus to the debtor and make it good, usually by reducing what the debtor would have to repay by that amount.  See also redeemable rights, reversion.