9.2.8. Interest Payment Claims
Recall that the issuer’s transfer agent identifies a bond certificate as being a good delivery, cancels the old certificate, and issues a new one registered in the name of the new owner. The issuer also employs a registrar to:
- • Monitor and audit the activities of the transfer agent
- • Make sure that a cancellation accompanies each new issuance of a bond certificate so that outstanding bonds do not exceed the number issued
- • Determine the ownership of the bonds for the next interest payment period
The registrar records the newly registered bonds in a bond register, disclosing the name of the new holder, the number of bonds, the amount held, and the date of registry.
Prior to each interest payment date, the registrar will close the books to identify the registered bondholders to whom it will send the next payment. This date is called the record date. The gap of time between the record date and the interest payment date varies, but is fixed in the bond resolution for any pa