4.10.1 Registration

4.10.1 Registration

An obligation must be issued in registered form to be tax exempt unless the bond (1) is an obligation not of a type offered to the public, to be determined based on whether similar obligations are in fact publicly offered or traded, or (2) has a maturity (at the time of issuance) of not more than 1 year. An obligation may be registered in either a certificate system or a book entry system.

Under a certificate system, the obligation is registered with the issuer or its agent as to both principal and stated interest, the holder is issued a physical certificate evidencing its rights to the amounts, and transfer of the obligation to a new holder occurs by surrender of the old certificate and either the reissuance by the issuer of the surrendered certificate or the issuance of a new certificate. Under a book entry system, the ownership interest in an obligation is reflected in a book entry record maintained by the issuer or its agent, and generally physical certificates are not delivered to individual holders. Any transfers of ownership are made through a book entry. The issuer may elect to change from a certificate system to a book entry system, or vice versa. Generally, tax exempt bond issues are registered through the book entry system maintained by The Depository Trust Company.