Debt Securities Law and Legal Definition

According to 13 CFR 108.50 _Title 13 - Business Credit And Assistance; Chapter I - Small Business Administration; Part 108 - New Markets Venture Capital _“NMVC”_ Program; Subpart B - Definition Of Terms Used In This Part 108_, Debt Securities “are instruments evidencing a loan with an option or any other right to acquire Equity Securities in a Small Business or its Affiliates, or a loan which by its terms is convertible into an equity position. Consideration must be paid for all options that one acquire.”

According to 12 CFR 12.2 [Title 12 -- Banks and Banking; Chapter I -- Comptroller of the Currency, Department of the Treasury; Part 12 -- Recordkeeping and Confirmation Requirements for Securities Transactions], debt security means any security, such as a bond, debenture, note, or any other similar instrument that evidences a liability of the issuer _including any security of this type that is convertible into stock or a similar security_ and fractional or participation interests in one or more of any of the foregoing. This definition does not include securities issued by an investment company registered under the Investment Company Act of 1940.