Simple English definitions for legal terms
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Definition: A type of investment company that issues face-amount certificates of the installment type or has such certificates outstanding.
Example: A company that issues face-amount certificates of $1,000 each and promises to pay the certificate holder a fixed amount of money at a future date, usually after a certain number of years. The certificate holder pays a fixed amount of money in installments until the certificate matures.
Explanation: Face-amount certificate companies are a type of investment company that issue certificates to investors and promise to pay a fixed amount of money at a future date. The certificate holder pays a fixed amount of money in installments until the certificate matures. The company invests the money received from the certificate holders in various securities and earns a return on the investment. When the certificate matures, the company pays the certificate holder the face amount of the certificate plus any accumulated interest.
face-amount certificate | face-amount certificate of the installment type