What is death?

Death is a condition included in the agreement on some bonds. This means that in the case of the dying of the bond holder, his survivors have the right to sell the bond back to the issuer and immediately receive their original nominal value. Death is sometimes known as the possibility of Survivora. Depending on specific conditions, this usually means that the will maker of the will must apply this possibility. The money paid by the bond issuer is then part of the estate and can be divided by heirs in accordance with the process of inheritance.

Death conditions are contained in indentation. This is a legal agreement that provides a manner in which the bond problem works and is a compulsory requirement when issuing a bond. The plant will include both the bond conditions, such as the date of its coupon and the redemption date, as well as the bond conditions such as B Be can be transferred to warehouses.

Investors considering a bond with disabilities of death should baketo check the conditions. For example, there may be a minimum time that must expire after the original binding problem before it can be applied; If the person dies before this period, the possibility is invalid. There may also be a maximum time limit after the death of a person. There may be specific requirements for the estate to prove that it has the legal right to carry out this possibility, and these requirements can be more complicated than simply named as the executor of the estate. Some forms of death will also allow someone who has a power of attorney if the bond holder becomes legally unfit, but is still alive.

The word put to "Death Put" comes from its wider use in an optics -based contract. The "put" option is the one in which one part in Thslouva has the right, but not an obligation to sell the specified asset at a fixed price for a fixed date of the other party. The main difference with death is that there is no fixed calendar date; Instead, the possibility is caused by the death holder's deathHography. The opposite of PUT, a term that gives one side the right to sell asset under solid conditions is known as the possibility of calling.