Lifecycle controls

Cancellation, expiry, death and succession

These rules distinguish a coded latent record from a funded debt instrument. Build 05 documents the cases but deliberately does not create automated legal consequences.

Voluntary latent cancellation

Proposed rule: before activation, a holder may request cancellation of a latent record under a defined authentication procedure. No principal refund arises because £0 was paid.

Issuer cancellation

Proposed rule: the issuer may cancel or retire an invalid, duplicate, fraudulent, technically defective or legally ineligible latent record, with the reason permanently audit-logged.

Expiry

Decision required: latent records may remain open indefinitely or expire after a stated period. Expiry must never be silently treated as repayment or default.

Death before activation

Decision required: determine whether a latent commitment is personal and lapses, or whether an authenticated successor may assume it. No rule is presumed in this prototype.

Death after activation

A funded bond would be an asset whose succession treatment must follow the final contract and applicable law. This requires identity and estate verification outside the anonymous public register.

Lost codes

Public lookup by personal name is prohibited by design. Production recovery would require a controlled evidence process linking the claimant to the coded record.

Duplicate certificate

A reprint does not create another bond. The Bond ID, not the number of printed certificates, identifies the registered record.

Fraud / disputed control

The record should be capable of being administratively frozen for investigation without representing that the underlying dispute has been decided.

Never activated

A latent record that never activates remains an unfunded record. It must not be represented as debt principal received, interest-bearing capital or reparations paid.

Accounting boundary: aggregate latent face value is a measure of recorded potential future financing only. It is not the company's cash, turnover, assets under management or funded debt.