Fjárfestingaverðbréf

Fjárfestingaverðbréf is a type of investment certificate issued by an Icelandic commercial bank, and it is used as collateral for overdrafts and other short-term loans. It is a non-negotiable investment instrument that can be held in an account with the issuing bank. Fjárfestingaverðbréf can only be used with the issuing bank, and it is not transferable to another bank.

To obtain a fjárfestingaverðbréf, the holder must deposit a certain amount of money in the account with the issuing bank. The bank then issues a series of certificates representing the deposited amount. These certificates are denominated in units of dal, the currency of Iceland. The proceeds of the sale of the certificates can be applied to pay interest and charges on customer loans and overdrafts at the bank.

Fjárfestingaverðbréf can be issued by Icelandic banks using banknotes and periodic interest without interest. According to Icelandic law, the accrued interest on the fjárfestingaverðbréf can be assigned to customer loans and overdrafts. The issuing bank has the authority to make payments and accept assignments from fjárfestingaverðbréf holders.

Fjárfestingaverðbréf are traded in limited numbers. The certificates themselves are non-negotiable and can be used for certain bank transactions. Fjárfestingaverðbréf certificates can be purchased in various denominations and are used primarily for collateral purposes by the issuing bank. They do not qualify as assets under Icelandic law.