Check-a-Month Plan Law and Legal Definition

Check-a-month plan is a method of investing a large sum of money in bonds which permits the investor to receive monthly income checks. Check-a-month plan automatically redeems enough shares each month to provide the investor with a check in an amount of investor’s choice. Under check-a-month plan the total amount available to invest is divided into six equal parts and bonds are purchased so that interest will be received monthly.