101 call protection
From ACT Wiki
A form of soft call protection for lenders/investors in securities, designed to mitigate the adverse effects of call risk for investors.
101 soft call protection requires the payment of a 1% premium to the investor, on any early redemption of a callable bond by the borrower/issuer.
At early redemption the premium becomes payable, together with principal and outstanding interest at the call/redemption date.
The premium sometimes applies only for an early part - for example just the first year - of the life of a security (the security becoming freely callable after that initial period of 101 call protection).