Extraordinary call

Early redemption of a revenue bond because the revenue source paying the interest on the bond has been eliminated or has disappeared.

extraordinary call

Redemption of a debt security due to unusual circumstances. For example, some bond issues can be redeemed prior to the scheduled maturity because of the destruction of the facility that was financed by the bonds. Extraordinary calls are most frequently used to retire single-family mortgage revenue bonds when homeowners refinance their mortgages. Extraordinary calls, generally made at par, nearly always work to the disadvantage to bondholders. Also called extraordinary redemption. See also optional call.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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