Nonrefundable

Provision in a bond Indenture that either prohibits or sets limits on the issuer's retiring the bonds with the proceeds of a subsequent issue, called Refunding. Such a provision often does not rule out refunding altogether but protects bondholders from Redemption until a specified date. Other such provisions may preclude refunding unless new bonds can be issued at a specified lower rate. See also Call Protection.

Provision in a bond Indenture that either prohibits or sets limits on the issuer's retiring the bonds with the proceeds of a subsequent issue, called Refunding. Such a provision often does not rule out refunding altogether but protects bondholders from Redemption until a specified date.