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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

face-amount certificate  

Definition 1.

A debt security issued by a type of mutual fund called a face amount certificate company. The debt holder makes payments periodically to the issuer, and the issuer agrees to pay to the holder the face value at maturity (or a different amount if the security is called prior to maturity).
 

Definition 2.

A debt security issued by face amount. The holder makes payments periodicaly to the issues, and the issuer promies to pay the purchaser the face value at maturity or the surrended value if the security is presented by the maturity specified in the certificate.
 
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