A registered bond with “Happy Birthday” scrawled across the face of the certificate is delivered...

Vendor: FINRA
Product: Series-7
Update on: Jul 25, 2025
Questions: 400

FINRA Series-7 Question Answer

A registered bond with “Happy Birthday” scrawled across the face of the certificate is delivered to a broker/dealer in satisfaction of sale by another member firm. Assuming it is accompanied by an authentic assignment, power of substitution form, and tax stamps (if appropriate), this is good delivery only if:

the certificate is validated by the transfer agent

the certificate is validated by the registered owner

the marking did not cover the name of the registered owner or the principal amount of the bond

this is not a good delivery under any circumstances