Bonds called for payment or redemption. In many issues of bonds the right is reserved to pay off all, or a certain portion of the issue, under conditions and at such times as may be specified in the bonds and deed of trust.
Bonds which are " callable," that is, subject to this right of prepayment, are oftentimes considered undesirable, owing to the fact that the notice of a bond being " called " may not reach the attention of the holder, and, as a result, he may lose interest by not discovering that it has ceased until the time of presentation of the next coupon. It is important, therefore, that the holder of a bond subject to redemption previous to its actual maturity, shall be conversant with the terms under which such bond may be "called," and ascertain from time to time whether or not the " call " has actually been issued. It is proper that the banking house selling such a bond should itself keep track of this matter, and notify its customer in case of a " call " being issued affecting any of his securities, and many bankers try conscientiously to do this; but in spite of their best efforts " calls " are apt to pass unnoticed (and if so, no blame should be placed upon them), so it is wise for each holder to protect himself in this regard.