What is COUPONS? Definition of COUPONS in Black's Law Dictionary - Legal dictionary - Glossary of legal terms.
Interest and dividend certificates; also those parts of a commercial instrument which are to be cut, and which are evidence of something connected with the contract mentioned in the instrument. They are generally attached to certificates of loan, where the interest is payable at particular periods, and, when the interest is paid, they are cut off and delivered to the payer. Wharton. Toon v. Wapinitia Irr. Co., 117 Or. 374, 243 P. 554, 556.
In England, they are known as warrants or dividend warrants, and the securities to which they belong, debentures; 13 C. B. 372.
Coupons are written contracts for the payment of a d3finite sum of money on a given day, and being drawn and executed in a form and mode for the purpose, that they may be separated from the bonds and other instruments to which they are usually attached, it is held that they are negotiable and that a suit may be maintained on them without the necessity of producing the bonds. Each matured coupon upon a negotiable bond is a separable promise, distinct from the promises to pay the bonds or the other coupons, and gives rise to a separate cause of action. Aurora v. West, 7 Wall. 88, 19 L.Ed. 42. Haven v. Depot Co., 109 Mass. 88; Thompson v. Perrine, 106 U.S. 589, 1 S.Ct. 564, 27 L.Ed. 298.
Coupon bonds. Bonds to which are attached coupons for the several successive installments of interest to maturity. Benwell v. Newark, 55 N. J.Eq. 260, 36 A. 668; Tennessee Bond Cases, 114 U.S. 663, 5 S.Ct. 974, 29 L.Ed. 281.
Coupon notes. Promissory notes with coupons attached, the coupons being notes for interest written at the bottom of the principal note, and designed to be cut off severally and presented for payment as they mature. Williams v. Moody, 95 Ga. 8, 22 S.E. 30.
More On This Topic: COVENANT
---
That's the definition of COUPONS in Black's Law Dictionary - Legal dictionary - Glossary of legal terms. Courtesy of Cekhukum.com.
