Maybe I was being too specific, but I think the "Recall Notice" in your old system sounds about the same as what I was trying to describe. It is common (but not strictly necessary) for a shortened loan period to be part of the process, as it gives a lot of leeway in allowing faculty to checkout items for very long periods under the condition that we may ask for it back (shorten the loan period and issue a notice) should the need arise.
While I did a lot of this type of recall in my time managing a circulation desk to satisfy student requests, I have never dealt with this concept of sending a checked-out item straight to cataloging, though it sounds interesting. Hopefully someone can enlighten us both a little further about the original intentions (e.g. Does it shorten the loan period? Does it send a notice?), but in the meantime, I will throw out the suggestion that we might call this new idea a "Processing" hold or simply a "Cataloging" hold.