From: frissell@panix.com (Duncan Frissell)
Date: Wed, 10 Aug 94 11:10:18 PDT
To: perry@imsi.com
Subject: Re: e$
Message-ID: <199408101809.AA27221@panix.com>
MIME-Version: 1.0
Content-Type: text/plain


At 01:51 PM 8/9/94 -0400, Perry E. Metzger wrote:
>
>> > Yes it does. Bearer bonds are illegal in the US.

>If the check is written to "cash" and is used to avoid federal
>transfer reporting requirements, it is CURRENTLY illegal. I suspect
>that checks made out to "cash" would be illegal in all cases if they
>were widely used to avoid reporting requirements.
>
>Perry
>

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.

DCF

"Who promises the Black Caucus that if they will help kill the Crime Bill,
he will support affirmative action in executions -- starting with the White
Guys responsible for the Waco Massacre."