Nonrefundable


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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 ?
125% nonrefundable debt issues, repurchased over $400 million of these issues in open-market transactions, and issued $1.
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.
That would also comply with Ethics Opinion 93-2, which holds that nonrefundable fees are allowed but are subject to excessive fee rules.
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.
The Rules Committee also received comments on whether it was accurate to call the fees nonrefundable because all fees are subject to the excessive fee rules.
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.
Perhaps the biggest change to airfare rules is US Airway's new policy that makes nonrefundable tickets worthless if they are not used for the flight listed on the ticket.
Let me see if I understand the proposed nonrefundable fee disclosure rule (4-1.