catastrophe call

Catastrophe call

Early redemption of a municipal revenue bond because a catastrophe has destroyed the project that provided the revenue source backing the bond.

Catastrophe Call

The call of a bond that occurs when an asset secured by that bond is destroyed. For example, suppose a company issues a bond to build a factory, with the coupon and principal payments secured by the revenue that factory produces. If that factory burns down, there is nothing securing the future coupon payments, and the issuer may make a catastrophe call to save itself from a liability it may not be able to pay.

catastrophe call

Redemption of a bond because of a disaster. For example, a bond issue collateralized by an airplane may be called if the plane crashes.
References in periodicals archive ?
If you are the media please take some time out from reporting crime, sex and scandal and give some attention to the catastrophe called tuberculosis that globally kills nearly 5000 people every day despite being curable.
Some have said this is the last chance for our leaders to save this planet from the catastrophe called global warming.
Set in post-apocalyptic Tokyo, nearly the entire population of the world has been annihilated by a worldwide catastrophe called the Conception.