Business and Personal Finance Dictionary

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• CALL FEATURES
  
  The terms of the indenture giving the issuer the right or requiring the issuer to redeem or call all or a portion of an outstanding issue of bonds prior to their stated maturities at specified prices. ·In structuring an advance refunding, the issuer is usually exercising an Optional Redemption Provision in which case the issuer has the right to redeem bonds, usually after a stated date and at some price (a premium) greater than par/accreted value, but is not required to do so. ·Term bonds generally have a predetermined Mandatory Redemption Schedule which gives a fixed schedule of dates and principal amounts to be redeemed by the trustee from issuer or estate funds. These calls are usually at par plus accrued interest. ·Other types of calls are Extraordinary Optional Redemptions which allow the issuer to call or redeem bonds upon the occurrence of certain events, and Extraordinary Mandatory Redemptions which are required calls based on the occurrence of certain events, (e.g., the change in the use of a facility originally financed by private activity bonds). ·When a bond has no optional call provisions, it is said to be non-callable, abbreviated N/C or N.C.
  
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