6.05.02  Certificate of Deposits

. . Certificate of Deposits Specimen Copy of Certificate of Deposit Certificate of Deposits are short-term deposit instruments issued by banks and financial institutions to raise large sums of money. Certificate of Deposits are issued in the form of usance promissory notes. They are easily convertible in nature and are in marketable form having particular face value and maturity. The Certificate of Deposit is transferable from one party to another. Due to their negotiable feature, they are also known as negotiable certificate of deposit. Issuers The Issuers of Certificate of Deposits are Commercial Banks, Financial Institutions, etc., Subscribers Certificate of Deposits are available for subscription by individuals, corporations, trusts, associations and NRIs. It is a document of title to a time deposit. It is a bearer certificate and is negotiable in the market. Features of Certificate of Deposit . Document of title to time deposit . It is unsecured negotiable instruments. . It is freely transferable by endorsement and delivery. . It is issued at discount to face value. . It is repayable on a fixed date without grace days. 12th Commerce Unit - - . . AM