Form of Securities
Delivery of physical securities generally may be made in either bearer or registered form, unless the parties agree otherwise.
Bearer bonds. Bearer bonds must have all unpaid coupons securely attached to the certificate in the correct sequence. All attached coupons must have the same serial number as the certificate. Like the certificate itself, if a coupon is damaged, making it impossible to read its pertinent information (issuer, certificate number, or either the coupon number or payment date), good delivery will only be possible if the coupon is endorsed or guaranteed by the issuer or a commercial bank.
Registered securities. The person selling a registered security must sign the back of the security certificate to constitute good delivery. This is called an assignment. The signature must be identical to the name on the certificate. The assignment is most often sent to the issuer’s transfer agent by registered mail.
Another method to assign securities is to enter the name of a third party on the certificate to safeguard the security in transit. This is called a power o