From: "Perry E. Metzger" <perry@piermont.com>
Date: Wed, 23 Aug 95 07:03:06 PDT
To: rah@shipwright.com (Robert Hettinga)
Subject: Re: e$: The Book-Entry/Certificate Distinction
In-Reply-To: <v02120d04ac60b6165a45@[199.0.65.105]>
Message-ID: <199508231402.KAA10229@frankenstein.piermont.com>
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Robert Hettinga writes:
> A bond is a certificate with your signature saying that you'll pay a
> certain amount of money on a certain date, or that you owe a certain
> amount of money, and will pay interest at a certain rate to the
> bearer on a certain schedule, and principal on a certain date, *or*
> you could issue a bond with coupons that could be sent in to collect
> the interest.

Actually, what you've just described is general commercial paper, not
just a bond. Anything that lists a sum certain in money to be paid on
a date certain (with various other parameters, too, like a place) is
negotiable commercial paper. Checks, notes, and other instruments are
all commercial paper. They are not, by the way, certificates in the
sense that I suspect you mean.

Perry