Glossary of Municipal Securities Terms


bond whose owner is designated on records maintained by a registrar, the ownership of which cannot be transferred without the registrar recording the transfer on its records. Almost all municipal securities issued after June 1983 are in “fully registered” form due to provisions of the Internal Revenue Code that deny tax-exemption to interest paid on bonds that are not in registered form. Bonds initially issued as bearer bonds may be “registered as to principal only.” In this form, coupons reflecting the interest payments due remain attached to the bonds and must be detached and redeemed in order to receive the interest due. See: BOND REGISTER; FULLY REGISTERED. Compare: BEARER BOND.

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