One of my friends has a Tiger Bond and she recieved a letter telling her that she will have to cash out the bond this year or the money's will be given to the government. Is this legal? I'm an accounting student so I don't know to much about bonds other than accounting for them, but this seems really odd and perhaps illegal.
2006-11-27 07:00:14 · 1 answers · asked by horrorfan 3 in Business & Finance ➔ Taxes ➔ United States
I'm not familiar with Tiger Bonds. Is this a 'callable' bond? If it is, the issuer has the right to redeem to bond before the stated maturity date. The terms of such a call would be determined when the bond was originally issued. I'm sure your accounting professors could explain more than I remember. As far as turning the money over to the government, each state has an 'Unclaimed Funds' department. Could that be what they are referring to?
EDIT: It just occurred to me, the bonds may have passed they maturity date. If they have, and are not redeemed, the funds propably will be turned over to the state's unclaimed funds department.
2006-11-27 10:29:28 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋