Toggle Note

Sometimes, you have a bad month. Can’t pay all your bills. You're ignoring texts from your landlord and parking around the block to keep away from the repo man.

The same kinds of things happen to corporations. Not necessarily the repo bit, but...they can fall behind in their debts. When that happens, a toggle note comes in handy.

The toggle note includes a clause that lets the borrower skip a payment under certain circumstances. They have to make up the payment later, paying off all the missed payments by the maturity date for the security.