What are face-amount certificates of the installment type?
face-amount certificates of the installment type means any certificate, investment contract, or other security which represents an obligation on the part of its issuer to pay a stated or determinable sum or sums at fixed or determinable times more than twenty-four (24) months after issuance, in consideration of the …
What does face-amount certificate means?
A face-amount certificate company is a type of corporation that raises money by issuing investors debt securities of a specified value. These instruments, called face-amount certificates (FACs), are backed by a security interest.
What qualifies as an investment company?
Generally, an “investment company” is a company (corporation, business trust, partnership, or limited liability company) that issues securities and is primarily engaged in the business of investing in securities.
What is an investment company under the investment company Act?
Section 3(a)(1)(C) of the Investment Company Act defines an investment company as an issuer that is engaged or proposes to engage in the business of investing, reinvesting, owning, holding or trading in securities, and owns or proposes to acquire “investment securities” having a value exceeding 40 percent of the value …
What is face amount?
Face amount refers to what the words or numbers on the printed page of a financial instrument literally say. Often used in the context of life insurance, the face amount refers to the stated amount of money payable to the deceased’s beneficiaries at the time of loss or when the policy matures.
What is a face amount in insurance?
2. The face value of life insurance is the dollar amount equated to the worth of your policy. It can also be referred to as the death benefit or the face amount of life insurance. In all cases, life insurance face value is the amount of money given to the beneficiary when the policy expires.
Is a face amount certificate company an investment company?
A face-amount certificate company is an investment company which offers an investment certificate as defined by the Investment Company Act of 1940. In general, these companies issue fixed income debt securities that obligate the issuer to pay a fixed sum at a future date.
What is face amount example?
The face amount is the value stated on the face of a financial instrument. The term usually applies to the amount stated on a bond certificate, which the issuer is obligated to pay when the bond matures. This face amount is usually set at $1,000.
What is face amount policy?
What is the face value of a life insurance policy? In short, your face value is the amount of money your beneficiaries will receive from your insurance company at the time of your death. You might hear it called your death benefit, coverage amount or face amount.
What is a Face-Amount Certificate?
A face-amount certificate is effectively a contract between an investor and an issuer. Under this arrangement, the investor agrees to pay the issuer a set amount of money either in periodic installments or as a lump sum—if the investor pays for the certificate in a lump sum, the investment is known as a “fully paid” face-amount certificate.
What is a’Face-Amount Certificate Company’?
What is a ‘Face-Amount Certificate Company’. A Face-Amount Certificate Company is a type of investment firm that issues debt securities to its investors. These securities are called face-amount certificates and are backed by a security interest on assets such as real property or other securities.
What is a fixed rate Certificate of deposit (FAC)?
Holders of these certificates are usually paid a fixed amount of annual interest and then refunded the principal of their securities at a specified termination date. Companies use FACs to obtain financing at relatively low-interest rates.