Nonrefundable


Also found in: Dictionary, Medical, Encyclopedia.

Nonrefundable

Not permitted, under the terms of an indenture, to be refundable.

Nonrefundable

Describing a bond that may not be retired for a certain number of years or until maturity. Nonrefundable bonds protect bondholders from the risk that the issuer may effectively refinance a bond at a lower interest rate, which would deprive bondholders of coupon payments to which they would otherwise be entitled. Most bonds are nonrefundable for at least five or 10 years after issue. See also: Refundable.

nonrefundable (NR)

A provision of some bond issues that prohibits the issuers from retiring the bonds before a specified date on which funds for the retirement will be raised externally (that is, from outside the issuing firm). Essentially, this provision restricts a borrower from taking advantage of lower interest rates by replacing a bond issue that carries a high coupon rate of interest with a new bond issue that carries a reduced coupon rate of interest. Most bonds are nonrefundable for five to ten years from the date of issue. However, when the funds are raised internally, the bonds ordinarily may be called for some other reason such as a reorganization or merger. A nonrefundable feature works to the advantage of the investor because the bonds are usually not refunded unless interest rates have fallen below the coupon. Compare noncallable.
References in periodicals archive ?
I think we should trust the lawyers to make the judgment on putting a nonrefundable fee in trust because the client may have an equitable interest in it," he said.
125% nonrefundable debt issues, repurchased over $400 million of these issues in open-market transactions, and issued $1.
The nonrefundable CTC combines with other personal, nonrefundable tax credits and offsets the excess of the regular tax liability over the taxpayer's tentative minimum tax (before the alternative minimum tax foreign tax credit) for any tax year.
The court's ruling upheld a decision against attorney Edward Cooperman of Garden City, Long Island, who had been repeatedly warned by the State Grievance Committee about charging nonrefundable retainers before the committee brought charges against him in 1989.
The IRS argued that the nonrefundable portion of the commitment fees should have been included in Freddie Mac's income in the year of receipt, because the taxpayer had met the Sec.
Up until a few weeks ago, it was possible to purchase a low-fare, nonrefundable ticket, let it expire, then turn around and reuse it for up to a year.
The airlines are still permitting passengers with a nonrefundable ticket to rebook a flight in advance for a fee of USD100.
In response to the News' article of September 1, "Bar passes on amending nonrefundable fees rule," I am confused by the following sentence: "Nonrefundable fees in such cases are necessary so the lawyers can ensure they have adequate fees to see the case through.
The airline has stated that it will honour nonrefundable tickets only on the flights for which they were purchased, and those tickets will have no value once the flight has departed.
Contestants must submit a completed application, a copy of their birth certificate or passport, and a nonrefundable $20 application fee no later than 5 p.
Restaurants and bars are allowed a nonrefundable credit for employer FICA taxes paid on employee cash tips (tip credit) under Sec.