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Extraordinary Redemption

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Dictionary Says

Definition of 'Extraordinary Redemption'

A provision that gives a bond issuer the right to call its bonds due to an unusual one-time occurrence, as specified in the offering statement. Extraordinary redemptions, also called "extraordinary calls," occur when bond proceeds aren't spent according to schedule, when bond proceeds are used in a way that makes nontaxable bond interest taxable, or when a catastrophe destroys the project being financed, among other reasons.
Investopedia Says

Investopedia explains 'Extraordinary Redemption'

There are two types of extraordinary redemptions: extraordinary mandatory redemptions and extraordinary optional redemptions. Some municipal bonds are issued with an extraordinary redemption provision. An extraordinary redemption means the issuer pays the holder the bond's face value plus accrued interest. A more common circumstance under which a bond would be called, assuming it is provided for in the offering statement, is a drop in interest rates that allows the issuer to refinance its project by issuing new bonds at a lower rate.

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