Grandfathering provisions offer US bearer bonds reprieve

Author: | Published: 1 Feb 2010

The revised proposals were introduced on December 7 and will still ban US issued bearer bonds. But there is now a section stating that issuances cleared through a dematerialised book entry system would be considered as being registered by the authorities.

Crucially, the bill’s grandfathering provisions have been tweaked. If the bill is passed, then the rules will not affect new issuances until two years after the date of enactment. Previously the time period was only six months.

“The extension to two years is...