A provision that entitles the corporation to repurchase its bonds or preferred stock from their holders at stated prices over specified periods.
A provision of bond's indenture which gives the issuer the right to retire the debt, fully or partially, before the scheduled maturity. A call provision is detrimental to investors who run the risk of losing a high-coupon bond when interest rates begin to decline.
Agreement that allows an issuer to redeem a bond before maturity under specified conditions.
A stipulation allowing some bond issuers to pay off their bond debt before maturity. Bond issuers tend to exercise call provisions when interest rates fall significantly, allowing them to issue new bonds at lower interest rates.
A clause in a bond's indenture that allows the issuer to redeem the bond before maturity. A call provision clause indicates the first call date and whether or not the bond can be called at par or at a slight premium to par. Some preferred stock issues also have call provision clauses indicating the conditions of redemption.
A clause in a bond's indenture granting the issuer the right to buy back all or part of an issue prior to the maturity date.
A bond provision that allows the bond issuer to redeem the bond prior to the bond's maturity date. If the bond states that this provision can be exercised after a given number of years, or at a price greater then the par value, or that the bond is not callable, the bond is said to have call protection.
(1) A provision in a bond contract that gives the issuer the right to redeem the bonds under specified terms prior to the normal maturity date. (2) Clauses in a loan that give the lender the right to accelerate the debt's repayment schedule upon the occurrence of a specific event or date.
A clause in the mortgage or deed of trust giving the mortgagee or beneficiary the right to accelerate payment of he mortgage debt in full on a certain date or on the happening of specified conditions.
A feature of bonds or preferred stock that allows the issuer to redeem part or all of an issue before it matures. Partial calls, in which the issuer redeems only part of an issue, are conducted by lottery.
The written agreement between an issuing corporation and its bondholders that gives the corporation the option to redeem the bonds at a specified price before their maturity date and also specifies the conditions of the redemption.
A clause in a mortgage giving the lender the right to demand and receive payment of the balance of the unpaid principal in full under certain conditions. A call provision is similar to an acceleration clause.
An embedded option granting a bond issuer the right to buy back all or part of the issue prior to maturity.
The right of an issuer to redeem a bond prior to maturity under terms set prior to the issuance of the bond.
In a mortgage or deed of trust, it refers to the mortgagee's or beneficiary's ability to speed up payments of the obligation under certain conditions.
Call Provision allows the issuer to call back the bond prior to maturity.
In a mortgage or deed of trust, a condition that gives the right to demand or "call in" the demand of the obligation in the event of a breach of specified terms or conditions. In bonds, the issuer's right to redeem the bond before maturity.
The call provision describes the details by which a bond may be redeemable by the issuer in whole or in part prior to the maturity.