Registered Bond
A bond whose owner is designated on records maintained for this purpose by a registrar, often the paying agent or trustee.
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Book-Entry Only
Term used to describe a Bond which cannot be purchased in physical or certificated form. In other words, there are no printed bond certificates delivered to the actual bondholders. A single bond or a bond for each Maturity of the Bonds is delivered to a central securities depository, typically The Depository Trust Company (DTC), but sometimes to the Trustee under the FAST Program. Bonds held in Book-Entry Only form are Registered Bonds. Ownership by a bondholder of a Book-Entry Only Bond is generally determined by an entry on the records of the Registrar or the records of DTC and its participants.
See Also
The Depository Trust Company (“DTC”)
A central securities certificate depository through which Securities are held in book-entry only form.
Fast Automated Securities Transfer (FAST)
Program of Depository Trust Company (DTC) with a goal of reducing certificate movement by having bond certificates held by FAST transfer agents rather than by DTC.
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Guaranty
A third party’s promise to pay the debt service on the bonds or perform some other obligation, which is the primary obligation of another party.