Bearer Bonds
Bearer: A small percentage (less than 1%) exist in bearer form. A bearer security is a printed certificate with interest coupons attached. A bearer security does not contain the name of the owner and we don’t keep records of ownership. Title to a bearer security passes on delivery. We make interest and principal payments to the presenter of the interest coupons and certificate. We discontinued the issuance of bearer securities in 1982.
A security containing no ownership information and for which the physical bearer is presumed to be the owner. In the case of bonds, coupons are physically attached to the bond and must be presented to the issuer to receive interest payments. Bearer stocks may be bought and sold without endorsement. Bearer bonds have not been issued in the United States since 1982, and thus they have become a significantly less important activity. Bearer stocks are also quite rare.