TN 4 (03-92)

SI 01140.250 Municipal, Corporate and Government Bonds

A. Introduction

1. Bond

A bond is a written obligation to pay a sum of money at a specified future date. Bonds are negotiable and transferable.

2. Municipal Bond

A municipal bond is the obligation of a State or a locality (county, city, town,village or special purpose authority such as a school district).

3. Corporate Bond

A corporate bond is the obligation of a private corporation.

4. Government Bond

A government bond, as distinct from a U.S. Savings Bond (see SI 01140.240), is a transferable obligation issued or backed by the Federal Government.

B. Operating policy

Municipal, corporate, and government bonds are negotiable and transferable. Therefore, their value as a resource is their CMV. Their redemption value, available only at maturity, is immaterial.

C. Development and documentation

Development and documentation instructions for stocks (SI 01140.220) also apply to bonds.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501140250
SI 01140.250 - Municipal, Corporate and Government Bonds - 10/14/2014
Batch run: 10/14/2014
Rev:10/14/2014