Callable (Adjective)
Meaning
Subject to a demand for payment before due date; "callable bonds".
Classification
All adjective clusters.
Examples
- The company issued callable bonds with a 5-year maturity date, allowing them to be redeemed early if interest rates fell.
- Investors purchased callable certificates of deposit, which gave the bank the option to repay the principal before the maturity date.
- The callable loan agreement stipulated that the lender could demand full repayment at any time if the borrower's credit score dropped below a certain threshold.
- The corporation's callable notes had a provision that allowed the issuer to retire the debt early, saving on interest payments.
- The callable preferred stock could be redeemed by the company at its discretion, providing flexibility in managing its capital structure.