Coupons - Definition - Law Dictionary Home Dictionary Definition coupons

Definition :

Coupons [fr. Couper, Fr., to cut], interest and dividend certifictes; also those parts of a commercial instrument which are to be cut, and which are evidence of something connected with the contract mentioned in the instrument. They are generally attached to certificates of loan, where the interest is payable at particular periods, and, when the interest is paid, they are cut off and delivered to the payer. A coupon does not require a stamp; it is nothing more than an I.O.U.