TN 4 (03-92)
A bond is a written obligation to pay a sum of money at a specified future date. Bonds
are negotiable and transferable.
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).
A corporate bond is the obligation of a private corporation.
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.
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.
Development and documentation instructions for stocks (SI 01140.220) also apply to bonds.