Call Provision
/ˈkɔːl prəˈvɪʒən/
Definitions
- (n.) A contractual clause allowing one party to demand payment, redemption, or performance before the specified maturity or due date.
The bond includes a call provision enabling the issuer to repay the debt early.
- (n.) A clause in insurance policies permitting the insurer to cancel or terminate the policy under specified conditions.
The insurance contract's call provision allows termination after thirty days' notice.
Forms
- call provisions
Related terms
See also
Commentary
Typically used in finance and insurance contracts, the term highlights the right to demand early action; precise conditions and notice periods must be clearly drafted to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.