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. Currency Certificate

    A currency certificate grants the right to convert an amount ...
  2. One-Day Certificate

    A type of temporary financing used by the U.S. Treasury. One-day ...
  3. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  4. Certificate of Indebtedness

    A certificate of indebtedness was something of an "IOU" from ...
  5. Mutual Investment Certificate

    A certificate issued by a local or municipal authority for the ...
  6. Certificate of Participation - ...

    A certificate of participation (COP) is a type of financing where ...
Related Articles
  1. Personal Finance

    5 Financial Concerns Military Families Face in 2017

    Be aware of these financial concerns that military service members and their families face.
  2. Insights

    Finding the Right Accounting Certification

    Are you deciding on developing a career in accounting? Having an accounting certification may be the boost your career needs. Find out the right certificate for you.
  3. Investing

    What’s The Difference Between Shares And Stocks?

    In today’s markets, the distinction between stocks and shares has become blurred.
  4. Retirement

    Certifications For Estate Planning

    These certifications can lead to a promising career, but is estate planning for you?
  5. Financial Advisor

    Advisors: Which Certifications Are Essential?

    The right advisor credentials can make all the difference, but wading through some 100 certifications can be a challenge. Here's some help.
  6. Insights

    What Countries Spend On Antiterrorism

    It would be an understatement to say that no country's anti-terrorism budget has decreased in the last two decades. Here are some hard numbers.
  7. Personal Finance

    Make a Successful Transfer from Military to Civilian Jobs

    Here are several tips to help during your transition from the military to a civilian job.
  8. Small Business

    A Guide To The Six Sigma Green Belt

    Curious about the Six Sigma Green Belt? Here's what you need to know.
  9. Personal Finance

    Military Spending: U.S. Versus Everywhere Else

    A look at the figures and patterns of US spending on its military compared to the other countries.
  10. Insights

    Internal Auditor: Career Path & Qualifications

    Find out what kind of work internal auditors do in large organizations, and learn more about how to get started working in the field.
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 >>
Hot Definitions
  1. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  2. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  3. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  5. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  6. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
Trading Center