face-amount certificate


Also found in: Acronyms.

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 ?
A face-amount certificate is an obligation of the issuer to pay a face-, or principal amount, plus specified interest, to the holder of the certificate.
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.