catastrophe call


An early redemption of a municipal revenue bond due to the destruction of the funded project by a catastrophe, such as a flood. The bond is redeemed early because the revenue source for the bond no longer exists. For example, if a municipal revenue bond was issued to fund a toll road, and that road was destroyed by an earthquake, the bond would be called and investors would only receive principal.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
catastrophe bond catastrophe future