cleanup call

Cleanup Call

Also called a cleanup buyback, an option in securitization transactions in which the issuer may reduce its own administrative expenses by buying back the remaining issue when the principal has been reduced to an insignificant amount, usually to less than 10% of the original issue. This option is often exercised for mortgage-backed securities.

cleanup call

Early redemption of the entire balance of a debt issue when a relatively small amount of the original issue remains outstanding. For example, mortgage-backed securities are gradually paid down as mortgages backing the bonds are paid off by homeowners. At some point the issuer of the mortgage-backed securities may decide to reduce its own administrative expenses by calling the balance of the issue.
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On or after the earlier of (1) the three-year anniversary of the Closing Date or (2) the date when the aggregate stated principal balance of the mortgage loans is reduced to 30% of the Cut-Off Date balance, the Cleanup Call Party has the option to purchase all the mortgage loans from the Trust at a price equal to the aggregate outstanding balance of the mortgage loans plus accrued and unpaid interest as well as unreimbursed advances and fees.
Edgardo Angara supported the cleanup call but cautioned against abrogating the Visiting Forces Agreement.
Lee Ann Smith, chair of a local group pushing for cleanup called Protecting Our Water and Environmental Resources, said the EPA shouldn't wait until its studies are finished before taking steps to get rid of the toxic mess.
Insured by XL Insurance in Exton, Pa., the cleanup called for pollution legal liability coverage, which protects against one of the biggest problems in brownfield development--surprises.
The cleanup called for removal of 99 percent of the waste from the tank.
And in this particular condominium, the cleanup called fur paint by the gallon and thick applications of plaster on nearly every wall.
The guidance addresses the risk-based capital treatment for (1) split or partially rated instruments, (2) nonqualification of corporate bonds or other securities for the ratings-based approach, (3) spread accounts that function as credit-enhancing interest-only strips, (4) audits of internal credit risk rating systems, and (5) cleanup calls. (See SR letter 02-16.)
The second phase of the cleanup calls for investigation and cleanup of the contaminated soil that is contributing to the hexavalent chromium groundwater contamination.