substitution of a new promissory note for a maturing one. If the old note is surrendered, it legally is considered a novation. Renewal of a loan is accompanied by cancellation of a maturing note and making of a new one, which is then recorded on the bank’s records. Renewal may also mean an extension of the maturity of an existing loan.
automatic reestablishment of an insurance policy’s in-force status, usually achieved through payment of the premium due.
subscription order from a current subscriber received prior to expire or within six months after expire. Most publishers do not make any profit on a subscription until it has been renewed. A high renewal rate of 50% to 75% is essential to the economic survival of periodicals that do not derive most of their revenue from selling advertising space (such as children’s or consumer magazines that don’t accept advertising, or magazines that are sold only by subscription). Most renewals are sold at the full undiscounted basic rate, in contrast to new subscriptions that are sold at discounted rates. The prior sources of subscribers who renew at a high rate are carefully tracked so that efforts to recruit new subscribers will be concentrated on those sources. Renewal orders may be received from sources of business other than the publishers own renewal promotions, resulting in lower renewal revenues. For example, a subscriber may use a bind-in card with a discount offer to renew.