From: prig0011@gold.tc.umn.edu
Date: Wed, 10 Aug 94 12:11:54 PDT
To: frissell@panix.com (Duncan Frissell)
Subject: Re: e$
In-Reply-To: <199408101809.AA27221@panix.com>
Message-ID: <0012e492668a27630@gold.tc.umn.edu>
MIME-Version: 1.0
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According to legend, Duncan Frissell said:
> 
> Bearer bonds are not illegal in the US.
> 
> Under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), any
> interest payments made on *new* issues of domestic bearer bonds are not
> deductible as an ordinary and necessary business expense so none have been
> issued since then.  At the same time, the Feds administratively stopped
> issuing treasury securities in bearer form.  Old issues of government and
> corporate debt in bearer form still exist and will exist and trade for 30 or
> more years after 1982.  Additionally, US residents can legally buy foreign
> bearer securities.

The last US Bearer Bond issues mature in 1997. I also believe that to
collect interest, and to redeem the bond at maturity, you must give your
name and tax-id number to the paying agent. (I can check with the
department here that handles it if anyone is interested in the pertinent
OCC regs that apply)