Yes. Ownership transfer can be completed by executing the transfer instructions on the back of the Minibond certificate along with an OPPD Minibond Transfer Information Form and mailing both documents to the OPPD Minibond Administrator. However, the entire amount of the interest due will be paid, on any April 1 or October 1, to the owner of record on the immediately preceding March 1 or September 1, respectively. OPPD will not prorate interest payments. Minibond sellers and buyers are responsible for distributing interest for their respective holding periods.
The Minibonds have an early redemption or “PUT” option. The instructions vary depending upon the series of Minibonds. Following are the instructions for each type and series of Minibonds.
Current Interest Bearing Minibonds:
- The 2001 Current Interest Bearing Minibonds can be redeemed on the October 1 interest payment of every year. The request for redemption must be submitted to the Minibond Administrator one month in advance of the payment date, or by September 1 for October 1 redemption. The redemption price is 100% of its principal amount, plus interest accrued to the redemption date, less a Yield Adjustment Fee of $14.00 per $500 Current Interest Bearing Minibond.
Capital Appreciation Minibonds:
- The 2001 Capital Appreciation Minibonds can be redeemed on the October 1 interest payment of every year. The request for redemption must be submitted to the Minibond Administrator one month in advance of the payment date, or by September 1 for October 1 redemption. The redemption price is 100% of its accreted value as of the redemption date, less a Yield Adjustment Fee of $5.60 per $200 Capital Appreciation Minibond.
Under current law, interest on Minibonds is excludable from gross income for federal and Nebraska state income tax purposes. Interest on Minibonds is not subject to the Alternative Minimum Tax. Even though interest on the Minibonds is excluded from gross income for federal and Nebraska state income tax purposes, receipt of interest may otherwise affect an owner’s income tax liability. A Minibond holder should consult a tax advisor concerning specific situations. OPPD can not give investors tax advice.
In 2006, the Internal Revenue Service changed the reporting requirement for interest on tax-exempt bonds. As a result, OPPD is required to send a 1099-INT statement to all Current Interest Bearing Minibond holders and to report tax-exempt interest paid to the Internal Revenue Service annually, beginning with the interest paid in 2006. The interest paid on OPPD Minibonds remains tax-exempt for federal and Nebraska state income tax purposes.
Having an out-of-state address does not affect the tax-free nature of the interest on Minibonds for federal income tax purposes. However, interest paid on Minibonds may be subject to state income tax in the state in which the Minibond owner resides, if other than Nebraska.
The 2001 Current Interest Bearing and Capital Appreciation Minibonds will mature October 1, 2021.
You are not required to fill out paperwork to receive payment when your Minibond matures. Our system will process checks for all of the maturing Minibonds.
You do not need to mail your Minibond certificate to OPPD. It is recommended that you destroy the certificate or mark the certificate as paid once you receive the payment at maturity.
A check will be issued to the owner(s) of the bond and mailed to the address on record. To ensure prompt delivery of payment, please advise OPPD of address changes by completing the Minibond Address Change Form.
Principal and the final interest due on each Current Interest Bearing Minibond upon maturity will be payable by check mailed by OPPD to the registered owner(s) as appears on the Minibond Register on the Record Date.
The Accreted Value of each Capital Appreciation Minibond will be payable by check mailed by OPPD to the registered owner(s) as appears on the Minibond Register on the Record Date.
A Current Interest Bearing Minibond is one on which the investor receives interest payments semiannually between the time the Minibond is issued and its redemption or maturity. The certificate number for a Current Interest Bearing Minibond begins with the letter I, for example I01-4500.
A Capital Appreciation Minibond is one on which the investor receives no interest payments between the time the Minibond is issued and its redemption or maturity date. Instead, the interest compounds semiannually and is payable at maturity. The certificate number for a Capital Appreciation Minibond begins with the letter C, for example C01-4500.
There are four options for Minibond ownership registration:
- single owner
- joint tenants with rights of survivorship
- tenants in common
- trustee holder
A single owner is the only owner of the Minibond.
Joint tenants with rights of survivorship provides that each party owns an undivided interest in the entire Minibond and upon the death of one joint tenant, title passes to the surviving owner(s).
Tenants in common provides that each party owns an undivided interest in the Minibond, but there is no right of survivorship upon the death of a tenant. That tenant’s interest in the property must pass to its rightful new owner(s) as determined by the will of the deceased tenant.
A trustee manages a trust: an entity created to hold assets, including Minibonds, for the benefit of certain persons. Most trusts are founded by the persons who execute a written declaration of trust which establishes the trust and defines the terms and conditions upon which it will be conducted.