DEFINITION of 'Periodic Payment Plan Certificate'

A certificate representing ownership interest in a periodic payment plan. Through section 27 of the Investment Company Act of 1940, the Securities and Exchange Commission regulates the investment companies that sell periodic payment plan certificates. It determines the maximum sales load that can be charged, requirements for companies issuing periodic payment plan certificates, rules regarding surrender of certificates, refund privileges and more.

BREAKING DOWN 'Periodic Payment Plan Certificate'

In the past, periodic payment plan certificates were frequently sold to military personnel despite there being no advantage for military personnel to own this type of investment. Because of related abuses, the Military Personnel Financial Services Protection Act, enacted Sept. 29, 2006, made it illegal to sell periodic payment plan certificates to military personnel. The act did not invalidate existing certificates held by military personnel.

RELATED TERMS
  1. SEC Form N-27E-1

    A filing with the Securities and Exchange Commission (SEC) that ...
  2. Periodic Payment Plan

    A type of investment plan, often sold to military personnel, ...
  3. Share Certificate

    A share certificate is a written document signed on behalf of ...
  4. Push Out

    One of two ways to effect a stock split. In a push out, new share ...
  5. Trust Certificate

    A bond or debt investment, usually in a public corporation, that ...
  6. SEC Form N-27F-1

    A filing with the Securities and Exchange Commission (SEC) that ...
Related Articles
  1. Managing Wealth

    Index-Linked Certificates Of Deposit: Upside Potential, Low Risk

    Index-linked CDs generate returns similar to indexes, without the potential for loss.
  2. Personal Finance

    How Military Spending Affects The Economy

    Military spending is a one area where there is no private solution to replace the public purse, but it does end up impacting the economy.
  3. Investing

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  4. Personal Finance

    Putting Your CFA Level I on Your Resume

    Learn techniques for emphasizing your CFA Level I status in the Skills and Certifications or Professional Development section of your resume.
  5. Retirement

    Certifications For Estate Planning

    These certifications can lead to a promising career, but is estate planning for you?
  6. Investing

    Finding The Right Accounting Certification

    The right accounting certification can open the doors of opportunity.
  7. Investing

    What's an Incumbency Certificate?

    An incumbency certificate lists an organization’s incumbent directors and officers.
  8. Investing

    What’s The Difference Between Shares And Stocks?

    In today’s markets, the distinction between stocks and shares has become blurred.
  9. Personal Finance

    Finding The Right Accounting Certification

    An accounting certification may be the boost your career needs. Find out how to get the most bang for your buck.
  10. Managing Wealth

    A 529 Plan Fit For An Ivy League Education

    The Independent 529 plan offers a unique investment for those wanting to send their kids to the best colleges in the U.S.
RELATED FAQS
  1. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
  2. I hold stock certificates in a company that just had a stock split. What happens ...

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an ... Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center