Bond interest is usually paid semiannually. On notes, interest is typically paid at maturity. Form of issuance. Since July 1983, as a result of federal tax law changes, municipal bonds have been issued in registered form only. With a registered security, your name is registered on the issuer's books and appears on the bond.
Ownership is recorded through data entry at a central clearing house.
Your confirmation of purchase from your bank or investment firm provides you with a written record of the transaction. With book-entry securities, physical transfer of certificates is not necessary. Registered and book-entry bonds offer a number of protections and conveniences to bondholders including protection from loss or theft, automatic payment of interest, notification of calls, and ease of transfer, among others. Before July 1983, municipal securities were issued for the most part in certificate form with coupons attached. The issuer has no record of who owns these bonds.