Face-Amount Certificates financial definition of Face-Amount Certificates
face-amount certificate (redirected from Face-Amount Certificates)
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
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
SBMCC's predecessor company dates back to 1914, and over 2,000 SBM face-amount certificates
are presently outstanding to certificate holders in multiple states.
SBM is registered under the Investment Company Act of 1940 as an issuer of face-amount certificates, which guarantee investors a fixed rate of return at a future date.
According to the terms of the Acquisition, SBM assumed the obligations of it's the predecessor SBMs' outstanding face-amount certificates and approximately $28 million in assets.