Book-entry bonds as a variety of the debt securities

Abstract

Problem Setting. The article is devoted to the allocation of the features of the legal order and legal nature of the book-entry bonds as a variety of the debt securities.

Analysis of the recent researches and publications. The book-entry securities and their place among other objects of the civil legal relations from the moment of their appearance on the securities market have been devoted many scientific works and publications both Ukrainian scientists and scientists of other countries, in particular, E. Dyomushkina, L. Dobrynina, V. A. Barulin, D. Stepanov, E. Reshetin, V. L. Yarotsky, G. N. Shevchenko, O. V. Vygovsky, S. Ya. Vavzhenchuk and others.

Paper objective. With regard of definitions of the bond as the debt security of the documentary form of issue which has been proposed by the scientists specialized on civil law problems  at different times of the development of the teaching on securities and specific features of the book–entry securities as certain rights, it is necessary to allocate  peculiarities of   the legal order and legal nature of the book-entry bonds as a variety of the debt securities.

Paper main body. In the article the different approaches to the definition of the bond have been given. It is specified that the documentary bond as the debt security mediates or establishes   relations of   the loan between the issuer of the bond and its owner and  obligates the issuer to return a certain cash equivalent within a specified period and to pay a certain percentage (profit).

On the base of the comparative analysis of the documentary and book-entry securities the content of which includes the certain rights, the features of the book-entry bond as the debt security have been allocated: 1) the content of the right, embodied in the decision on the issue of the securities and in the securities emission prospectus, includes property ( obligation) right of the requirement by its owner to return their nominal value and the agreed interest within the prescribed period; 2) their emission is always public transaction which establishes the legal relations of the loan between the issuer of the bonds and its owner in the form of the electronic document; 3) bonds may be both as registered bonds and also as bearer bonds.

Conclusions. Taking into account the current legislation of Ukraine which provides issue of the bonds only in the book-entry form and mentioned above features of the  book-entry bonds, the following definition of the bond has been proposed: «The bond is the book-entry debt security determining relations of the loan between the issuer and its owner and  certificates the property ( obligation) right of the requirement by its owner  embodied in the decision on issue of the securities and securities emission prospectus  ( for the state bonds of Ukraine and the conditions of its placement ) to  return the owner of the bond its nominal value with the agreed interest within the prescribed period».