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Home > Investors & Finance > Investor Relations > Minibond Information

Minibond Information

 
 

Frequently Asked Questions

 

May I transfer ownership of a Minibond to another person or re-register a Minibond to change the ownership due to the death of an owner?

Investor Relations
Contact Information

Omaha Public Power District
444 South 16th Street Mall
Omaha, NE 68102-2247
Phone: 402-636-2000
E-mail: finfo@oppd.com


Can I redeem a Minibond sooner than the maturity date?

Is the interest on Minibonds tax-free?

If the interest on Minibonds is tax-exempt for federal and Nebraska state income tax purposes, why did I receive a 1099-INT statement?

I have moved outside the state of Nebraska, is the interest on Minibonds still tax-free?

When will my Minibond mature?

What do I need to do to receive payment when my Minibond matures?

What is a Current Interest Bearing Minibond?

What is a Capital Appreciation Minibond?

What forms of ownership are available for Minibonds?



 

May I transfer ownership of a Minibond to another person or re-register a Minibond to change the ownership due to the death of an owner?

Yes. Ownership transfer can be completed by executing the transfer instructions on the back of the Minibond certificate along with an OPPD Minibond Transfer Information Form and mailing both documents to the OPPD Minibond Administrator.  However, the entire amount of the interest due will be paid, on any April 1 or October 1, to the owner of record on the immediately preceding March 1 or September 1, respectively. OPPD will not prorate interest payments.  Minibond sellers and buyers are responsible for distributing interest for their respective holding periods.

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Can I redeem a Minibond sooner than the maturity date?

The Minibonds have an early redemption or “PUT” option. The instructions vary depending upon the series of Minibonds. Following are the instructions for each type and series of Minibonds.

Current Interest Bearing Minibonds:

  • The 2001 Current Interest Bearing Minibonds can be redeemed on the October 1 interest payment of every year. The request for redemption must be submitted to the Minibond Administrator one month in advance of the payment date, or by September 1 for October 1 redemption. The redemption price is 100% of its principal amount, plus interest accrued to the redemption date, less a Yield Adjustment Fee of $14.00 per $500 Current Interest Bearing Minibond.

Capital Appreciation Minibonds:

  • The 2001 Capital Appreciation Minibonds can be redeemed on the October 1 interest payment of every year.  The request for redemption must be submitted to the Minibond Administrator one month in advance of the payment date, or by September 1 for October 1 redemption. The redemption price is 100% of its accreted value as of the redemption date, less a Yield Adjustment Fee of $5.60 per $200 Capital Appreciation Minibond.

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Is the interest on Minibonds tax-free?

Under current law, interest on Minibonds is excludable from gross income for federal and Nebraska state income tax purposes. Interest on Minibonds is not subject to the Alternative Minimum Tax. Even though interest on the Minibonds is excluded from gross income for federal and Nebraska state income tax purposes, receipt of interest may otherwise affect an owner’s income tax liability. A Minibondholder should consult a tax advisor concerning specific situations. OPPD can not give investors tax advice.

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If the interest on Minibonds is tax-exempt for federal and Nebraska state income tax purposes, why did I receive a 1099-INT statement?

In 2006, the Internal Revenue Service changed the reporting requirement for interest on tax-exempt bonds. As a result, OPPD is required to send a 1099-INT statement to all Current Interest Bearing Minibondholders and to report tax-exempt interest paid to the Internal Revenue Service annually, beginning with the interest paid in 2006. The interest paid on OPPD Minibonds remains tax-exempt for federal and Nebraska state income tax purposes.

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I have moved outside the state of Nebraska, is the interest on Minibonds still tax-free?

Having an out-of-state address does not affect the tax-free nature of the interest on Minibonds for federal income tax purposes.  However, interest paid on Minibonds may be subject to state income tax in the state in which the Minibond owner resides, if other than Nebraska.

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When will my Minibond mature?

The 2001 Current Interest Bearing and Capital Appreciation Minibonds will mature October 1, 2021.

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What do I need to do to receive payment when my Minibond matures?

Principal and the final interest due on each Current Interest Bearing Minibond upon maturity will be payable by check mailed by OPPD to the registered owner(s) as appears on the Minibond Register on the Record Date.

The Accreted Value of each Capital Appreciation Minibond will be payable by check mailed by OPPD to the registered owner(s) as appears on the Minibond Register on the Record Date.

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What is a Current Interest Bearing Minibond?

A Current Interest Bearing Minibond is one on which the investor receives interest payments semiannually between the time the Minibond is issued and its redemption or maturity. The certificate number for a Current Interest Bearing Minibond begins with the letter I, for example I01-4500.

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What is a Capital Appreciation Minibond?

A Capital Appreciation Minibond is one on which the investor receives no interest payments between the time the Minibond is issued and its redemption or maturity date. Instead, the interest compounds semiannually and is payable at maturity. The certificate number for a Capital Appreciation Minibond begins with the letter C, for example C01-4500.

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What forms of ownership are available for Minibonds?

There are four options for Minibond ownership registration:

  • single owner
  • joint tenants with rights of survivorship
  • tenants in common
  • trustee holder

A single owner is the only owner of the Minibond.

Joint tenants with rights of survivorship provides that each party owns an undivided interest in the entire Minibond and upon the death of one joint tenant, title passes to the surviving owner(s).

Tenants in common provides that each party owns an undivided interest in the Minibond, but there is no right of survivorship upon the death of a tenant. That tenant’s interest in the property must pass to its rightful new owner(s) as determined by the will of the deceased tenant.

A trustee manages a trust: an entity created to hold assets, including Minibonds, for the benefit of certain persons. Most trusts are founded by the persons who execute a written declaration of trust which establishes the trust and defines the terms and conditions upon which it will be conducted.

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