Bond Coupons Clause Samples
The Bond Coupons clause defines the terms under which interest payments, known as coupons, are made to bondholders. Typically, this clause specifies the frequency of coupon payments (such as semi-annual or annual), the interest rate, and the method of payment. For example, it may state that bondholders will receive a fixed percentage of the bond's face value at set intervals until maturity. The core function of this clause is to ensure clarity and predictability regarding the bond's income stream, thereby protecting both the issuer and the investor by outlining payment obligations and expectations.
Bond Coupons. If the Collateral consists of bonds with coupons, Pledgor authorizes the Bank to remove all coupons from such bonds when interest is due and send them for collection on Pledgor's behalf. The proceeds of such bonds will be applied as directed by Pledgor in writing. The Bank shall have no responsibility or liability for failure to process such coupons in a timely fashion. If any coupon is returned unpaid, the Bank may either debit any of Pledgor's deposit accounts with the Bank or reverse the loan credit, as appropriate, in the amount of each such coupon previously credited, plus the Bank expenses incurred in the attempted collection. If Pledgor's deposit accounts have insufficient funds to pay any or all such amounts, each such unpaid amount shall be added to the Obligations, and shall be secured by the Collateral.