A latent record should not become an active funded bond merely because time passes. Activation should occur only after a defined set of conditions has been satisfied and the holder is expressly invited to complete the next stage.
IBIS, or the final legally constituted operational vehicle acting within the IBIS architecture, has established the lawful basis on which the proposed bond may be offered, promoted, subscribed for and administered.
Principal, interest or return, maturity, redemption, default, cancellation, succession, transferability and governing-law terms have been fixed.
The categories of persons who may participate, geographical restrictions and any investor classification requirements have been determined.
Any legally required identity, sanctions, anti-money-laundering, tax or other checks are operational before money is accepted.
Funds can be accepted through an appropriate payment and accounting process, with clear segregation and reconciliation.
The production register can preserve ownership, status history, payment history, certificate history and an auditable record of material events.
Holder is informed that activation conditions have been satisfied.
Final terms and risk information are provided before any commitment to fund.
Required eligibility and identity checks are completed.
Only then may money be accepted and the status be changed under the production system.