Make Whole Call

A type of call provision in a bond allowing the borrower to pay off remaining debt early. The borrower has to make a lump sum payment derived from a formula based on the net present value (NPV) of future coupon payments not paid because of the call.

A make whole call will be defined in the indenture. The issuer doesn't expect to have to use this type of provision, but if they do, investors will be compensated, or "made whole." Because the cost can often be significant, such provisions are rarely invoked.