callnotice

Callnotice, sometimes written as call notice or notice of call, is a formal written notification issued under a contract or agreement to exercise a right to call for a specific action. The precise effect of a callnotice depends on the contract provisions, but common purposes include early redemption, repayment, delivery of an asset, or termination of an agreement.

In finance, callnotices are most often associated with callable bonds or loans. When an issuer elects to redeem before maturity, it issues a callnotice detailing the call date, the price to be paid (often par value with a premium), the amount outstanding, and any accrued interest. Holders are informed of the redemption and the expected settlement date. Some bonds include call protections that restrict or delay early call, affecting investors’ risk and yield.

In derivatives and options markets, the concept is related to the exercise of a call option. Exercising a call option typically requires the holder to submit an exercise notice to the counterparty or clearinghouse, triggering delivery of the underlying asset and settlement of the contract. In many exchange-traded contexts, exercise mechanics are predefined, and the term “exercise notice” is more common than “callnotice,” though both describe the initiation of a rights-based action.

Beyond finance, callnotices may appear in other contractual contexts where a party retains a right to demand payment, delivery, or termination upon a trigger event. In all cases, the exact steps, timing, and consequences are dictated by the specific contract, and parties must comply with the notice periods and formal requirements stated therein.