Book-Entry Only

Term used to describe a Bond which cannot be purchased in physical or certificated form. In other words, there are no printed bond certificates delivered to the actual bondholders. A single bond or a bond for each Maturity of the Bonds is delivered to a central securities depository, typically The Depository Trust Company (DTC), but sometimes to the Trustee under the FAST Program. Bonds held in Book-Entry Only form are Registered Bonds.  Ownership by a bondholder of a Book-Entry Only Bond is generally determined by an entry on the records of the Registrar or the records of DTC and its participants.

See Also

Registered Bond

A bond whose owner is designated on records maintained for this purpose by a registrar, often the paying agent or trustee. 

Fast Automated Securities Transfer (FAST)

Program of Depository Trust Company (DTC) with a goal of reducing certificate movement by having bond certificates held by FAST transfer agents rather than by DTC. 

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Useful Life

An accounting estimate of the number of years it is likely for an asset to remain in service for the purpose of cost-effective revenue generation.