(or Called) The issuer's right to redeem outstanding bonds before their scheduled maturity. The dates when an issuer may call bonds are specified in the official statement of every issue that has a call provision in its indenture.
A feature that is usually attached to a preferred stock or a convertible bond, where the company that issues the security has the option to call back in all or part of the outstanding securities prior to the scheduled maturity date, and to pay your money to you at a predetermined amount and rate. (See also: Call Provision)
A provision in a bond indenture that allows the issuer the option of paying off an obligation, either partially or in full, before the instrument's date of maturity. The issuer is therefore able to retire expensive debt to take advantage of lower interest rates.
(1) A feature of preferred stock through which it may be retired at the corporation's option by a price equal to or slightly higher than either the par or market value. (2) A bond feature, by which all or part of an issue may be redeemed by the corporation before maturity and under certain specified conditions.