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 ?
"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.
Recommendation: To eliminate the ambiguity regarding the refund of government-imposed fees to purchasers of unused nonrefundable tickets, the Secretary of Homeland Security should issue guidance regarding the refundability of the customs and immigration inspection fees to U.S.
US Airways Shuttle customers with nonrefundable tickets can continue to stand by for Shuttle travel free of charge until 31 December 2002.
The offering circulars and bond indentures of nonrefundable debt issues usually specified that the bonds could not be called for early redemption if the source of call funds was the proceeds of borrowing at a similar or lower interest cost.
972) for this calculation, as well as discussions with IRS personnel and examples in explanatory material, the IRS applies the nonrefundable CTC in the ordinary stacking order of NPCs, as shown below.
Instead, it specifically outlawed fees that are a nonrefundable condition of being hired by a client, even if the lawyer is dismissed before performing any work.
Note: Unused nonrefundable personal credits cannot be carried to another tax year.
The airlines are still permitting passengers with a nonrefundable ticket to rebook a flight in advance for a fee of USD100.
Clients are reimbursed for covered expenses that include nonrefundable deposits, pre-paid, unused portions of trip payments, plus the cost of returning home.
91, Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, requires these costs to be amortized over the life of the loan for financial accounting purposes.
"The major carriers have made all classes of seats, including first-class and full-coach, nonrefundable and instant-purchase for some popular destinations," notes ASTA President and CEO Joe Galloway.
According to the HCC, it depends on whether the fees are refundable, nonrefundable, or repayable.