pur­su­ant to § 793 BGB Bonds to bea­rer

Public auc­tions due to con­trac­tu­al pled­ges of rights pur­su­ant to Sec­tion 793 BGB Bonds in bea­rer form

(1) If someone has issued a docu­ment in which he pro­mi­ses the hol­der of the docu­ment a per­for­mance (bond on the hol­der), the hol­der may demand per­for­mance from him in accordance with the pro­mi­se, unless he is not entit­led to dis­po­se of the docu­ment. Howe­ver, the issuer is also released by the per­for­mance to a hol­der who is not entit­led to dis­po­se of the docu­ment.
(2) The vali­di­ty of the signa­tu­re may be made depen­dent on the obser­van­ce of a spe­cial form by a pro­vi­si­on included in the docu­ment. A signa­tu­re made by mecha­ni­cal repro­duc­tion shall be suf­fi­ci­ent for sig­ning.

Bea­rer bonds are bank bonds, savings bank bonds, savings bank cer­ti­fi­ca­tes, savings bonds, regis­tered bonds, public bonds, indus­tri­al bonds, con­ver­ti­ble bonds, cer­ti­fi­ca­tes, mor­tga­ge bonds, indus­tri­al bonds, etc.

The issuers of bea­rer bonds are com­pa­nies from trade, indus­try, trans­port and the ban­king sec­tor that are eli­gi­ble to issue bonds. They have been admit­ted to regu­la­ted stock exch­an­ge tra­ding in accordance with Sec­tion 32 et seq. of the Ger­man Stock Exch­an­ge Act.

Bea­rer bonds are secu­ri­ties that secu­ri­ti­ze claims against bor­ro­wers. They are issued as bea­rer secu­ri­ties for trans­fer. Each hol­der may demand the pro­mi­sed per­for­mance from the deb­tor. The hol­der of a bea­rer bond is also pre­su­med to be its owner. Sec­tion 935 (2) BGB sti­pu­la­tes that the deb­tor must make pay­ment to the hol­der of bea­rer bonds that have been sto­len, lost or other­wi­se come into cir­cu­la­ti­on wit­hout the debtor’s con­sent. The issuer’s obli­ga­ti­on to pay is trig­ge­red by the pre­sen­ta­ti­on of the cer­ti­fi­ca­te. The issuer may only refu­se pay­ment if the issue of the cer­ti­fi­ca­te is inva­lid or if the­re are objec­tions (such as lack of matu­ri­ty). Due to their infor­mal trans­fera­bi­li­ty, bea­rer instru­ments are high­ly fun­gi­ble. Their legal sta­tus is regu­la­ted in accordance with § 793 of the Ger­man Civil Code (BGB) and the owner of this docu­ment is not named. With the libe­ra­liza­ti­on of the capi­tal mar­ket in 1990, the appr­oval requi­re­ment was abo­lished.

Bonds may be sold by way of auc­tion by the gene­ral­ly publicly appoin­ted, sworn auc­tion­eer.