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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 1CENTRAL ADMINISTRATION
SUBCHAPTER APRACTICE AND PROCEDURES
DIVISION 2LEGAL SERVICES BOND DIVISION
RULE §1.59Conversion of Form of a Bond from Bearer Bond to Registered Bond and from Registered Bond to Bearer Bond and Presentation for Exchange

(a) The bond order authorizing an issue of bonds shall provide whether or not the bonds as originally issued under that order may be converted in form without reprinting. If an issue of bonds is to be reprinted to achieve conversion of form, the bond order shall provide the procedure necessary to have new exchangeable bonds printed. The issuing entity or some party other than the comptroller shall be responsible for having those bonds printed and delivered to the comptroller for exchange.

(b) The bond order shall provide whether bonds presented to the comptroller for exchange shall be canceled by him or delivered to the issuing entity for storage in anticipation of future exchange. If cancellation is required, the comptroller provides a certificate verifying cancellation.

(c) If the bond order permits conversion of the form of a bond by removal and reattachment of coupons, any coupon removed is stored by the comptroller in anticipation of future conversion.

(d) A bond shall be accepted by the comptroller for exchange only from the issuing entity, a bank, or a security dealer.

(e) All costs incurred in conversion and exchange (postal fees, insurance fees, etc.) shall be borne by a party other than the comptroller. In addition, the comptroller shall be paid $.25 for each bond or other public security handled for conversion or exchange.


Source Note: The provisions of this §1.59 adopted to be effective January 1, 1976.

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