Redemption
The repayment of bonds prior to their maturity date.
bond-basics
Extraordinary Mandatory Redemption
A Redemption of Bonds in the case of certain unexpected or one-time events occurring with respect to the Bonds or the project financed with the proceeds of the Bonds. These events are listed in the Bond and/or the Indenture or Bond Resolution and may include destruction of the project, excess Bond proceeds over the cost of the project, inability to obtain required permits and approvals or a determination that the Interest on the Tax-Exempt Bonds is no longer excludable from federal income tax.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
SEC Rule 15c2-12
Rule promulgated under the 1934 Exchange Act and adopted by the SEC in 1989 to establish standards for the procurement and dissemination of disclosure documents by underwriters as a means of enhancing the accuracy and timeliness of disclosure to municipal securities investors.