Political Risk Insurance Unfair Calling Of Demand Bonds

Definition of "Political risk insurance: unfair calling of demand bonds"

Insurance coverage that protects the exporter (even though the exporter may be in total compliance with the terms and conditions of the contract) in the event a foreign government calls the demand bonds. For example, after the Shah of Iran was overthrown, the new government called in the demand bonds posted by United States exporters and contractors to show its animosity toward the United States.

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