face-amount certificate

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Face-amount certificate

A debt security issued by face amount. The holder makes payments periodically to the issuer, and the issuer promises to pay the purchaser the face value at maturity or the surrendered value if the security is presented at the maturity specified in the certificate.

Face-Amount Certificate

A debt security with a face value printed on its certificate. A face-amount certificate obligates the issuer to pay the face value to the holder of the security at its maturity. Face-amount certificates ordinarily have face values of $1,000, though this may be higher or lower depending upon the issue.

face-amount certificate

Debt issued by a face amount certificate company obligating the issuer to redeem the certificate at face value at maturity. The buyer makes installment payments that earn interest over the life of the certificate.
References in periodicals archive ?
Establishments primarily engaged in issuing shares of mutual and money market funds, unit investment trusts, and face amount certificates are classified in 6722 or 6726.