Legal Definitions - face-amount certificate company

Definition: A type of investment company that issues face-amount certificates of the installment type or has such certificates outstanding.

Example: A company that issues face-amount certificates of $1,000 each and promises to pay the certificate holder a fixed amount of money at a future date, usually after a certain number of years. The certificate holder pays a fixed amount of money in installments until the certificate matures.

Explanation:Face-amount certificate companies are a type of investment company that issue certificates to investors and promise to pay a fixed amount of money at a future date. The certificate holder pays a fixed amount of money in installments until the certificate matures. The company invests the money received from the certificate holders in various securities and earns a return on the investment. When the certificate matures, the company pays the certificate holder the face amount of the certificate plus any accumulated interest.