Put provision

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Put provision

Gives the holder of a floating-rate bond the right to redeem the note at par on the coupon payment date.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Put Provision

A provision in some floating-rate bonds allowing a bondholder to redeem the bond at par on the date coupons are paid. This allows the bondholder to reinvest at a more favorable interest rate when the coupon rate changes on the floating-rate bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in classic literature ?
Having fitted my mast and sail, and tried the boat, I found she would sail very well; then I made little lockers or boxes at each end of my boat, to put provisions, necessaries, ammunition, &c., into, to be kept dry, either from rain or the spray of the sea; and a little, long, hollow place I cut in the inside of the boat, where I could lay my gun, making a flap to hang down over it to keep it dry.
It's a simple matter to put provisions in both the sale and purchase contracts to ensure you won't be caught with nowhere to live, or, on the other hand, stuck with two monthly payments.
Banks and companies usually put provisions in place for loans and credit lines in case of customer default.
With the threat of another idle weekend, club and league chiefs have put provisions in place to ensure that the Frew are in action.
Depaul has put provisions in place to keep one-night accommodation open 24 hours a day during the severe weather forecast for this week.
"However, you must put provisions in the contract whereby a process is introduced with hold points, sign-offs, and approvals that dictate the materials, brand, and finishes that are to be used.
We need to be conscious when we put in the new agreement between the Lions and SANZAAR that they put provisions in place and when we need to start negotiating with home unions and clubs about some adequate preparations.
Republicans in Congress later put provisions in must-pass budget bills that limited the U.S.
They fail to put provisions in their agreements that really hold the licensee's feet to the fire.
This paper prices convertible bonds with call and put provisions. Firstly, we model the financial market with the stochastic interest rates and the credit risk with suitable stochastic differential equations.
But he did point out that both chambers had put provisions in the legislation that would allow schools to give optional diagnostic tests to students in algebra II and English III.