Extraordinary Redemption
A provision which gives a bond issuer the right to call the bonds due to a one-time occurrence, as specified in the offering statement. The circumstances could range from natural disasters and cancelled projects to almost anything else.
Investopedia Commentary
Some municipal bonds are issued with an extraordinary redemption provision.
Also known as an extraordinary call or extraordinary redemption provision.
Related Links
Bond Basics Tutorial
See also: Bond, Call, Callable Bond, Issuer, Make Whole Call, Municipal Bond