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A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due.
Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer instrument. A coupon is a written contract for the payment of a definite amount on a specified date according to the terms of the main document from which it must be separated for presentation for payment. Each coupon represents a separate promise by its issuer to pay its holder on the due date. Failure to do so will support a Cause of Action for breach of contract.
couponnoun allocation, card, certificate, check, cheque, credit, credit check, detachable part of a certificate, detachable portion, dividend, interest certificate, interim dividend, negotiable instrument, note, premium bond, preeium certificate, redeemable part, redemption slip, sepaaable part of a certificate, separate ticket, share-out, slip, stub, ticket, token, voucher, written instrument
Associated concepts: coupon bond, coupon book, coupon interest, coupon note
See also: security, stock