coupons

Interest and dividend certificates; also those parts of a commercial instrument which are to be cut, and which are evidence of something connected with the contract mentioned in the instrument. They are generally attached to certificates of loan, where the interest is payable at particular periods, and, when the interest is paid, they are cut off and delivered to the payor. That portion of a bond redeemable at a specified date for interest payment. Coupons are written contracts for the payment of a definite sum of money on a given day, and being drawn and executed in a form and mode for the purpose, that they may be separated from the bonds and other instruments to which they are usually attached, it is held that they are negotiable and that a suit may be maintained on them without the necessity of producing the bonds. Each matured coupon upon a negotiable bond is a separable promise, distinct from the promises to pay the bonds or the other coupons, and gives rise to a separate cause of action. Thompson v. Perrine, 106 U.S. 589, 1 S.Ct. 564, 27 L.Ed. 298

@ coupon bonds

Bonds to which are attached coupons for the several successive installments of interest to maturity

@ coupon notes

Promissory notes with coupons attached, the coupons being notes for interest written at the bottom of the principal note, and designed to be cut off severally and presented for payment as they mature

@ coupon rate of interest

The interest rate stated on a bond. The coupon rate of interest times the par, or principal, value of a bond determines the periodic dollar interest payments received by the bondholder

@ coupon securities

Such securities usually provide for the payment of principal to the bearer thereof, and for payment of an installment of interest to the bearer of the respective interest coupons upon presentation thereof upon their respective due dates. Coupon securities are usually in the denomination of $1,000. Ownership of the security and/or coupons is transferred by delivery thereof. Such a security is negotiable under the Uniform Commercial Code. U.C.C. No.No. 8-105, 8-302

@