Zero Coupon Obligations definition

Zero Coupon Obligations. Any zero coupon bonds, i.e., obligations which accrue but do not pay income currently, which are sold at a discount from principal value and represent an obligation to receive the principal value thereof at a future date, issued by the U.S. government, which are deposited in a Trust. Only Zero Coupon Obligations which if certificated, are or may be registered and held by the Trustee in book entry form on the registration books of a bank or clearing house which it is authorized to use as custodian of assets of a unit investment trust pursuant to the Investment Company Act of 1940 shall be eligible for deposit in any Trust.

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Zero Coupon Obligations means any zero coupon bonds, i.e., obligations which accrue but do not pay income currently, are sold at a discount from principal value and represent an obligation to receive the principal value thereof at a future date, issued by the United States government, which are deposited in a Trust. Only Zero Coupon Obligations which, if certificated, are or may be registered and held by the Trustee in book entry form on the registration books of a bank, governmental entity or clearing house which it is authorized to use as custodian of assets of a unit investment trust pursuant to the Investment Company Act of 1940 shall be eligible for deposit in any Trust.

Zero Coupon Obligations means any zero coupon instruments, i.e., obligations which accrue but do not pay income currently, are sold at a discount from principal value and represent an obligation to receive the principal value thereof at a future date."

Examples of Zero Coupon Obligations in a sentence

In connection with any deposit pursuant to this Section 2.01(b) in the Select Equity and Treasury Trust, the Depositor shall be obligated to determine that the maturity value of the Zero Coupon Obligations included in the deposit, divided by the number of Units created by reason of the deposit, shall equal at least $10.00.
However, if Zero Coupon Obligations are sold on such day, then such Evaluation for the Zero Coupon Obligations shall be the weighted average of the execution prices for all Zero Coupon Obligations sold on such day.
The Trustee shall be reimbursed the amount of any such advance from the Trust as soon as Zero Coupon Obligations may be sold in such amount as will not reduce the maturity value of Zero Coupon Obligations still held in the Trust below the amount required to distribute $10.00 per Unit from the proceeds of the sale or maturity of the Zero Coupon Obligations upon the termination of the Trust on the Mandatory Termination Date.
However, Zero Coupon Obligations may be sold without limitation in the event of the Trust's termination.
Replacement Securities which are Zero Coupon Obligations must have the same maturity value as the Failed Contract Securities and, as close as is reasonably practical, the same maturity date, which must be on or prior to the Mandatory Termination Date.
In connection with any deposit pursuant to this Section 2.01(b) in an Equity and Treasury Trust, the Depositor shall be obligated to determine that the maturity value of the Zero Coupon Obligations included in the deposit, divided by the number of Units created by reason of the deposit, shall equal at least $11.00.
Only Zero Coupon Obligations which if certificated, are or may be registered and held by the Trustee in book entry form on the registration books of a bank or clearing house which it is authorized to use as custodian of assets of a unit investment trust pursuant to the Investment Company Act of 1940 shall be eligible for deposit in any Trust Fund.
If the Supervisory Servicer shall for any reason fail to maintain such a list, the Trustee may in its sole discretion designate a current list of Securities for such purposes but prior to the sale of any Zero Coupon Obligations the Trustee shall receive that certification described in the second paragraph of this Section 5.
Notwithstanding anything to the contrary in the Standard Terms and Conditions of Trust, Zero Coupon Obligations held by a Trust may not be sold unless the Depositor and the Trustee have determined that the maturity value of the Zero Coupon Obligations remaining after such proposed sale, divided by the number of Units outstanding after any tendered Units are redeemed, shall equal or exceed $10.00.
The Trustee shall not accept any deposit pursuant to this Section 2.01(b) unless the Depositor and Trustee have each determined that the maturity value of the Zero Coupon Obligations included in the deposit, divided by the number of Units created by reason of the deposit, shall equal $10.00; written certifications of such determinations shall be executed by the Depositor and Trustee and preserved in the Trust records.

More Definitions of Zero Coupon Obligations

Zero Coupon Obligations means any zero coupon bonds, i.e., obligations which accrue but do not pay income currently, are sold at a future date, issued by the U.S. government which are deposited in a Trust Fund.

Zero Coupon Obligations means any zero coupon bonds, i.e., obligations which accrue but do not pay income currently, are sold at a discount from principal value and represent an obligation to receive the principal value thereof at a future date, issued by the U.S. government, which are deposited in an Equity and Treasury Trust. Only Zero Coupon Obligations which, if certificated, are or may be registered and held by the Trustee in book entry form on the registration books of a bank, governmental entity or clearing house which it is authorized to use as custodian of assets of a unit investment trust pursuant to the Investment Company Act of 1940 shall be eligible for deposit in any Equity and Treasury Trust.