Call Terms Clause Samples
The Call Terms clause defines the conditions under which an issuer can redeem or "call" a security, such as a bond, before its scheduled maturity date. Typically, this clause specifies the time frames, notice requirements, and prices at which the issuer may exercise the call option, often including details like call protection periods or premium payments to investors. Its core practical function is to provide flexibility for the issuer to manage debt obligations proactively, while informing investors of the circumstances under which their securities may be redeemed early, thereby allocating risk and ensuring transparency.
Call Terms. Under Section 2.3 of the Policy, GLAIC may elect to pay the Policyholder all of the Fund Balance on July 15, 2011, or as of any date thereafter when a Periodic Payout is due (the “Call Dates”).
