Extraordinary Redemption
A provision which gives a bond issuer the right to call the bonds due to a one-time occurrence, as specified in the offering statement. The circumstances could range from natural disasters and cancelled projects to almost anything else.
Also known as an "extraordinary call" or "extraordinary redemption provision". Investopedia Says:
Some municipal bonds are issued with an extraordinary redemption provision. Related Terms:
Bond
Call
Callable Bond
Issuer
Make Whole Call
Municipal Bond |