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Call

 

1. lender's demand for early payment of a loan, because the borrower has failed to meet contractual commitments such as maintaining adequate insurance or making timely payments; or, in a Demand Loan, the lender's exercise of his right to ask for repayment in full at any time.

2. comptroller's call issued to National Bank by the Comptroller of the Currency to file a Call Report or Report of Condition.

3. regulatory agency's order to a distressed bank to raise more capital, sometimes referred to as a capital call.

4. Broker's demand for additional Margin or collateral when the value of customer's pledged collateral falls below a stated value, known as a margin call.

5. Redemption privilege exercised by a bond issuer, as permitted in the Indenture agreement of a mortgage backed bond or issue of asset-backed securities. It permits the issuer to retire the bonds if only a small portion of the issue is outstanding, in order to keep servicing costs from becoming unreasonable. Also called nuisance call.

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Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more