§ 26439 Bond Call Provisions

• •Some bonds can be paid back early, but only if the rules say so.
• •The people in charge decide when and how to pay back the bond early.
• •If a bond can be paid back early, it must say so right on the bond itself.
• •You might have to pay extra money (a premium) to pay the bond back early.

Imagine you lend money to a friend, and they promise to pay you back in 10 years. But after 5 years, they get extra money and want to pay you back early.

Your friend can only pay you back early if the original agreement says they can. If it does, they might have to pay you a little extra money as a thank-you for letting them pay early.