SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM S-1
POST-EFFECTIVE AMENDMENT NUMBER 25 TO
REGISTRATION STATEMENT NUMBER 2-95577
AMERICAN EXPRESS FLEXIBLE SAVINGS CERTIFICATE
UNDER
THE SECURITIES ACT OF 1933
IDS CERTIFICATE COMPANY
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(Exact name of registrant as specified in charter)
DELAWARE
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(State or other jurisdiction of incorporation or organization)
6725
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(Primary Standard Industrial Classification Code Number)
41-6009975
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(I.R.S. Employer Identification No.)
IDS Tower 10, Minneapolis, MN 55440, (612) 671-3131
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(Address, including zip code, and telephone number, including area
code, of registrant's principal executive offices)
Bruce A. Kohn - IDS Tower 10, Minneapolis, MN 55440-0010, (612) 671-2221
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(Name, address, including zip code, and telephone number,
including area code, of agent for service)
CONTENTS OF THIS POST-EFFECTIVE AMENDMENT NO. 25 TO
REGISTRATION STATEMENT NO. 2-95577
Cover Page
Prospectus
Part II Information
Signatures
American Express Flexible Savings Certificate
Prospectus
April 26, 2000
Earn competitive rates guaranteed by American Express Certificate Company for
the term you choose.
American Express Certificate Company (AECC or AXP Certificate Company), a
subsidiary of American Express Financial Corporation, issues American Express
Flexible Savings Certificates. You may:
o Purchase this certificate in any amount from $1,000 through $1 million.
o Select a term of six, 12, 18, 24, 30 or 36 months.
o Invest in successive terms up to a total of 20 years from the issue date of
the certificate.
Like all investment companies, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
This certificate is backed solely by the assets of AECC. See "Risk factors" on
page 2p.
American Express Certificate Company is not a bank or financial institution, and
the securities it offers are not deposits or obligations of, or backed or
guaranteed or endorsed by, any bank or financial institution, nor are they
insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve
Board or any other agency.
The distributor is not required to sell any specific amount of certificates.
Issuer:
American Express Certificate Company
IDS Tower 10
Minneapolis, MN 55440-0010
800-862-7919 (toll free)
Distributor:
American Express Financial Advisors Inc.
An American Express company
Initial interest rates
AECC guarantees a fixed rate of interest for each term. For the initial term,
the rate will be within a specified range of certain average certificates of
deposit interest rates, as published in the most recent BANK RATE MONITOR(R)
(BRM) Top 25 Market Average(R).. BANK RATE MONITOR and National Index are marks
owned by BANKRATE.COMsm, a division of Intelligent Life Corporation, N. Palm
Beach, FL 33408. See "About the certificate" for more explanation.
Here are the interest rates in effect April 26, 2000:
Simple Effective
Interest annualized
Term Rate* yield**
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6 month
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12 month
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18 month
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24 month
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30 month
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36 month
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* These are the rates for investments under $100,000. Rates may depend on the
factors described in "Rates for new purchases" and "Promotions and pricing
flexibility" under "About the certificate."
** Assuming monthly compounding.
These rates may or may not have changed when you apply to purchase your
certificate. Rates for future terms are set at the discretion of AECC and may
also differ from the rates shown here. See "Rates for new purchases" under
"About the certificate" for more explanation.
American Express Certificate Company may offer different rates for different
distribution channels. For more information call 800_____. Certificates of
deposits (CDs) with different rates may be available from American Express
Centurion Bank, an affiliate of AECC, including high rate CDs through Membership
Banking.
Risk factors
You should consider the following when investing in this certificate:
This certificate is backed solely by the assets of AECC. Most of our assets are
debt securities whose price generally falls as interest rates increase, and
rises as interest rates decrease. Credit ratings of the issuers of securities in
our portfolio vary. See "Invested and guaranteed by AECC," "Regulated by
government," "Backed by our investments" and "Investment policies" under "How
your money is used and protected."
Table of contents
Initial interest rates
Risk factors
About the certificate p
Read and keep this prospectus p
Investment amounts and terms p
Face amount and principal p
Value at maturity p
Receiving cash during the term p
Interest p
Rates for new purchases p
Promotions and pricing flexibility p
Additional investments p
How to invest and withdraw funds p
Buying your certificate p
Two ways to make investments p
Full and partial withdrawals p
When your certificate term ends p
Transfers to other accounts p
Two ways to request a withdrawal or transfer p
Three ways to receive payment when you withdraw funds p
Retirement plans: special policies p
Withdrawal at death p
Transfer of ownership p
For more information p
Taxes on your earnings p
Retirement accounts p
Gifts to minors p
How to determine the correct TIN p
Foreign investors p
Trusts p
How your money is used and protected p
Invested and guaranteed by AECC p
Regulated by government p
Backed by our investments p
Investment policies p
How your money is managed p
Relationship between AECC and American
Express Financial Corporation p
Capital structure and certificates issued p
Investment management and services p
Distribution p
Transfer agent p
Employment of other American Express affiliates p
Directors and officers p
Independent auditors p
American Express Certificates p
Appendix p
Annual financial information p
Summary of selected financial information p
Management's discussion and analysis of financial
condition and results of operations p
Report of independent auditors p
Financial statements p
Notes to financial statements p
About the certificate
Read and keep this prospectus
This prospectus describes terms and conditions of your American Express Flexible
Savings Certificate. It contains facts that can help you decide if the
certificate is the right investment for you. Read the prospectus before you
invest and keep it for future reference. No one has the authority to change the
terms and conditions of the American Express Flexible Savings Certificate as
described in the prospectus, or to bind AECC by any statement not in it.
Investment amounts and terms
You may purchase the American Express Flexible Savings Certificate in any amount
from $1,000 payable in U.S. currency. Unless you receive prior approval from
AECC, your total amount paid in over the life of the certificate, less
withdrawals, cannot exceed $1 million.
After determining the amount you wish to invest, you select a term of six, 12,
18, 24, 30 or 36 months for which AECC will guarantee an interest rate. AECC
guarantees your principal and interest. Generally, you will be able to select
any of the terms offered. But if your certificate is nearing its 20-year
maturity, you will not be allowed to select a term that would carry the
certificate past its maturity date.
The certificate may be used as an investment for your Individual Retirement
Account (IRA), 401(k) plan account or other qualified retirement plan account.
If so used, the amount of your contribution (investment) will be subject to any
limitations of the plan and applicable federal law.
Face amount and principal
The face amount of the certificate is the amount of your initial investment, and
will remain the same over the life of the certificate. Any investment or
withdrawal within 15 days of the end of a term will be added on or deducted to
determine principal for the new term. A withdrawal at any other time is taken
first from interest credited to your investment during that term. The principal
is the amount that is reinvested at the beginning of each subsequent term, and
is calculated as follows:
Principal equals Face amount (initial investment)
plus At the end of a term, interest credited to your account during the term
minus Any interest paid to you in cash plus Any additional investments to your
certificate minus Any withdrawals, fees and applicable penalties
Principal may change during a term as described in "Add-on feature" under
"Additional investments," and "Full and partial withdrawals."
For example: Assume your initial investment (face amount) of $5,000 has earned
$75 of interest during the term. You have not taken any interest as cash, or
made any withdrawals. You have invested an additional $2,500 prior to the
beginning of the next term. Your principal for the next term will equal:
$5,000 Face amount (initial investment)
plus $75 Interest credited to your account
minus ($0) Interest paid to you in cash
plus $2,500 Additional investment to your certificate
minus ($0) Withdrawals and applicable penalties or fees
=========
$7,575 Principal at the beginning of the next term
Value at maturity
You may continue to invest for successive terms for up to a total of 20 years.
Your certificate matures at 20 years from its issue date. At maturity, you will
receive a distribution for the value of your certificate. This will be the total
of your purchase price, plus additional investments and any credited interest
not paid to you in cash, less any withdrawals and penalties. Certain other fees
may apply as described in "How to invest and withdraw funds."
Receiving cash during the term
If you need your money before your certificate term ends, you may withdraw part
or all of its value at any time, less any penalties that apply. Procedures for
withdrawing money, as well as conditions under which penalties apply, are
described in "How to invest and withdraw funds".
Interest
Your investments earn interest from the date they are credited to your account.
Interest is compounded and credited at the end of each certificate month (on the
monthly anniversary of the issue date).
AECC declares and guarantees a fixed rate of interest for each three-month term
during the life of your certificate. We calculate the amount of interest you
earn each certificate month by:
o applying the interest rate then in effect to your balance each day;
o adding these daily amounts to get a monthly total; and
o subtracting interest accrued on any amount you withdraw during the
certificate month.
Interest is calculated on a 30-day month and 360-day year basis.
This certificate may be available through other distributors or selling agents
with different interest rates or related features and consequently with
different returns. You may obtain information about other such distributors or
selling agents by calling the Client Service Organization at the telephone
numbers listed on the back cover.
Rates for new purchases
When your application is accepted and we have received your initial investment,
we will send you a confirmation of your purchase showing the rate that your
investment will earn. AECC guarantees that when rates for new purchases take
effect, the rates will be within a range based on the average interest rates
then published in the BRM Top 25 Market Average(R).
In the case of the six-, 12-, 24- and 30-month terms AECC guarantees that, for
purchases of certificates for less than $100,000, your rate for your initial
term will be 15 basis points (.15%) below to 85 basis points (.85%) above such
rates for comparable length certificates of deposit (CDs). In the case of these
terms, for purchases of certificates for $100,000 or more, AECC guarantees that
your rate for your initial term will be within a range of zero-100 basis points
above such rates for comparable length CDs.
In the case of the 18-month term, because the BRM Top 25 Market Average(R)
doesn't typically publish rates for comparable length CDs, AECC guarantees that,
for purchases of certificates for less than $100,000, the rate for your initial
term will be within a range of five below to 95 basis points above the rates for
the 12-month CDs. In the case of the 18-month term, for purchases of
certificates of $100,000 or more, AECC guarantees that your rate for your
initial term will be within a range of 10-110 basis points above the rates for
12-month CDs.
In the case of the 36-month term, because the BRM Top 25 Market Average(R)
doesn't typically publish rates for comparable length CDs, AECC guarantees that,
for purchases of certificates for less than $100,000, the rate for your initial
term will be within five below to 95 basis points above the rates for 30-month
CDs. In the case of the 36-month term, for purchases of certificates of $100,000
or more, AECC guarantees that your rate for your initial term will be within
10-110 basis points above the rates for 30-month CDs. For example, if the rate
most recently published in the BRM Top 25 Market Average(R) with respect to
30-month CDs is 4.80% our rates in effect for that week for 36-month terms would
be between 4.75% and 5.75% for purchases for less than $100,000.
However, AECC guarantees that, for persons who have received a special
promotional coupon from AECC for purchase of a Flexible Savings Certificate with
an initial term of six, 12, 24 or 30 months and have satisfied any requirement
stated in the coupon, when rates for new purchases take effect, the rate for the
initial term will be within a range from 100 basis points (1%) to 200 basis
points (2%) above the average interest rate published for comparable length CDs
in the BRM Top 25 Market Average(R). Similarly, AECC guarantees that, for
persons who have received a special promotional coupon from AECC for purchase of
a Flexible Savings Certificate with an initial term of 18 or 36 months and have
satisfied the conditions in the coupon, when rates for new purchases take
effect, the rate for an initial term of 18 or 36 months will be within a range
from 100 basis points (1%) to 200 basis points (2%) above the average interest
rate published for 12-month CDs or 30-month CDs, respectively, in the BRM Top 25
Market Average(R). For example, the coupon may require that you make a minimum
investment and that you are not an existing client of AEFC, American Express
Financial Advisors Inc., or another subsidiary of AEFC. AEFC will select persons
to receive the coupon based on a business strategy to build relationships with
new clients in selected market segments who AEFC believes meet threshold
requirements for such factors as household income and home values. Coupons may
be sent only to persons who both fit this strategy and live in particular parts
of the country or are affiliated with particular organizations such as an
automobile club.
For your initial term, AECC may offer certificates with different terms than
those described above. Such terms may be from seven, 11, 13, 19, 25, 31 or 37
months. For these terms, AECC guarantees that, for purchases of certificates for
less than $100,000, your rate for your initial term will be within a range of
50-150 basis points above the rates published in the BRM Top 25 Market
Average(R) for the CDs specified above that have the maturity that is closest to
the term of the American Express Certificate in question. If two different BRM
Top 25 Market Averages(R) have the closest maturities, we will use the longest
maturity that is shorter than the term of the American Express Certificate in
question. For purchases of certificates of $100,000 or more, the range for your
initial term will be 65-165 basis points above the same rate. For example, in
the case of a seven-month term, AECC guarantees that, for purchases of
certificates less than $100,000, your rate for your initial term will be within
a range of 50-150 basis points above the rates for the six-month CDs, and for
purchases of certificates for $100,000 or more, your rate for your initial term
will be within a range of 65-165 basis points above the rates for the six-month
CDs. Purchase of a certificate in one of these special offers may result in a
later term of less than six months in order to permit your certificate to mature
20 years from its issue date. AECC may limit the offering of these certificates
to persons who have received a coupon as a promotion, based on a business
strategy to build relationships with new clients in related market segments or
persons who AEFC believes meet threshold requirements for such factors as
household income and home values or persons who fit this strategy and live in
particular areas of the country or are affiliated with particular organizations.
AECC may also offer different rates or terms to new clients, existing clients,
or to individuals who have purchased other products or used other services of
American Express Company or its subsidiaries, and may offer some terms only in
selected distribution channels. We also may offer different rates based on your
amount invested, your geographic location and whether the certificate is
purchased for an IRA or for a qualified retirement account.
The BRM is a weekly magazine published by Advertising News Service Inc., an
independent national news organization that collects and disseminates
information about bank products and interest rates. Advertising News Service
Inc. has no connection with AECC, AEFC or any of their affiliates.
The BRM Top 25 Market Average(R) is an index of rates and annual effective
yields offered on various length CDs by large banks and thrifts in 25
metropolitan areas. The frequency of compounding varies among the banks and
thrifts. CDs in the BRM Top 25 Market Average(R) are government insured
fixed-rate time deposits.
The BRM may be available in your local library. To obtain information on current
BRM Top 25 Market Average(R) rates, call the Client Service Organization at the
telephone numbers listed on the back cover between 8 a.m. and 6 p.m. your local
time.
Rates for new purchases are reviewed and may change weekly. Normally, the rate
you receive will be the higher of:
o the rate in effect for your chosen term on the date of your application, or
o the rate in effect on the date your application is accepted by AECC.
However, if your application bears a date more than seven days before its
receipt by AECC, the rate you receive will be the higher of:
o the rate in effect on the date your application is accepted by AECC, or
o the rate in effect seven days before receipt.
Except for specific promotions, AECC guarantees an initial rate 25 basis points
above the rate offered to the general public on this American Express
Certificate if it is purchased by using the CD transfer service offered by
American Express Financial Advisors Inc. to help you transfer money from a bank
or thrift CD account into AECC investments. Consequently, the highest and lowest
rate in the range of rates for initial terms of such certificates purchased
using the CD transfer service will be 25 basis points higher than the comparable
rates described at the beginning of this section for ranges of rates for initial
terms. To be eligible for this rate, you must transfer at least $10,000 from a
CD account to AECC to purchase one or more American Express Cash Reserve
Certificates and/or American Express Flexible Savings Certificates, and this
rate will only apply to those certificates.
Except for specific promotions, AECC guarantees active or retired AEFC
employees, AECC's directors, American Express financial advisors, their
immediate families and any U.S. employee of any affiliated company of AECC an
initial rate 75 basis points above the rate offered to the general public,
reflecting the lower distribution costs associated with such sales.
Consequently, the highest and lowest rate in the range of rates for initial
terms of such certificates purchased at the employee rate will be 75 basis
points higher than the comparable rates described at the beginning of this
section for ranges of rates for initial terms.
Rates for future terms: Interest on your certificate for future terms may be
greater or less than the rates you receive during your first term. In setting
future interest rates, a primary consideration will be the prevailing investment
climate, including CD yields as reflected in the BRM Top 25 Market Average(R).
Nevertheless, we have complete discretion as to what interest rate shall be
declared beyond the initial term. At least six days in advance of each term, we
will send you notice of the rate that your certificate will earn for that term.
If the BRM Top 25 Market Average(R) is no longer publicly available or feasible
to use, AECC may use another, similar index as a guide for setting rates.
Performance: From February 199__ through February 199__, American Express
Flexible Savings Certificate one year CD yields were generally higher than
average bank and thrift one year CD yields and Super NOW accounts, as measured
by the BRM Average.
Yields from February 199__ through February 199__
6% _________American Express Flexible Savings
Certificate - 1 year
4% .........CDs - 1 year
2%
Two lines comparing the yields for one-year American Express Flexible
Savings Certificate against those of one-year CDs with Flexible's
yield generally above the CD's
`92 `93 `94 `95 `96 `97 `98
The graph compares past yields and should not be considered a prediction of
future performance.
Promotions and pricing flexibility
AECC may sponsor or participate in promotions involving the certificate and its
respective terms. For example, we may offer different rates to new clients, to
existing clients, or to individuals who have purchased other products or used
other services of American Express Company or its subsidiaries.
We also may offer different rates based on the amount invested and/geographic
location and whether the certificate is purchased for an IRA or a qualified
retirement account.
These promotions will generally be for a specified period of time. If we offer a
promotion, the rates for new purchases will be within the range of rates
described under "Rates for new purchases."
Additional investments
You may make investments within 15 calendar days after the end of a term (the
grace period). Investments added to your certificate during the grace period
will increase the principal balance for purposes of the 25% add-on feature
described below and the 10% withdrawal feature described under "Full and partial
withdrawals." Additional investments may be in any amount so long as your total
investment, less withdrawals, does not exceed $1 million (unless you receive
prior approval from AECC to invest more). You will earn interest on additional
investments from the date we accept them. AECC will send a confirmation of
additional investments.
If you add to a certificate purchased other than through an American Express
financial advisor, you may be given different instructions regarding additional
investments.
Add-on feature: You may also add to your certificate during the term. These
additional investments may not exceed 25% of the certificate's initial principal
balance at the end of the grace period. This principal includes the balance at
the end of the previous term, plus or minus any deposits or withdrawals during
the grace period.
Any add-on or withdrawal during the grace period will change the principal
amount used to determine the amount available for the 25% add-on feature.
For example, suppose your original balance is $9,000. During the grace period,
you add $1,000. At any time during the current term, you could add up to 25% of
principal ($9,000 + $1,000 = $10,000), or $2,500 to your certificate.
The interest rate for these additional investments is the rate then in effect
for your account. If your additional investment increases the principal of your
certificate so that your certificate's principal has exceeded a break point for
a higher interest rate, the certificate will earn this higher interest rate for
the remainder of the term, from the date the additional investment is accepted.
How to invest and withdraw funds
Buying your certificate
Your American Express financial advisor will help you fill out and submit an
application to open an account with us and purchase a certificate. If you
purchase your certificate other than through an American Express financial
advisor - for example, through a direct marketing channel - you may be given
different purchase instructions. We will process the application at our
corporate offices in Minneapolis. When we have accepted your application and we
have received your initial investment, we will send you a confirmation of your
purchase, indicating your account number and applicable rate of interest for
your first term, as described under "Rates for new purchases." See "Purchase
policies" below.
Important: When you open an account, you must provide AECC with your correct
Taxpayer Identification Number (TIN), which is either your Social Security or
Employer Identification number. See "Taxes on your earnings."
Purchase policies:
o Investments must be received and accepted in the Minneapolis headquarters
on a business day before 3 p.m. Central time to be included in your account
that day. Otherwise your purchase will be processed the next business day.
o You have 15 days from the date of purchase to cancel your investment
without penalty by either writing or calling the Client Service
Organization at the address or phone number on the back of this prospectus.
If you decide to cancel your certificate within this 15-day period, you
will not earn any interest.
o If you purchase a certificate with a personal check or other non-guaranteed
funds, AEFC will wait one day for the process of converting your check to
federal funds (e.g., monies of member banks within the Federal Reserve
Bank) before your purchase will be accepted and you begin earning interest.
o AECC has complete discretion to determine whether to accept an application
and sell a certificate.
A number of special policies apply to purchases, withdrawals and exchanges
within IRAs, 401(k) plans and other qualified retirement plans. See "Retirement
plans: special policies."
Two ways to make investments
1
By mail
Send your check along with your name and account number to:
Regular mail: Express mail:
American Express American Express
Financial Advisors Inc. Financial Advisors Inc.
Client Service Organization Client Service Organization
70250 AXP Financial Center 733 Marquette Ave.
Minneapolis, MN 55474 Minneapolis, MN 55440-0010
2
By wire
For investment into an established account, you may wire money to:
Norwest Bank Minnesota
Routing No. 091000019
Minneapolis, MN
Attn: Domestic Wire Dept.
Give these instructions: Credit American Express Financial Advisors Account
#0000030015 for personal account # (your account number) for (your name).
If this information is not included, the order may be rejected and all money
received, less any costs AECC incurs, will be returned promptly.
o Minimum amount you may wire: $1,000.
o Wire orders can be accepted only on days when your bank, AEFC, AECC and
Norwest Bank Minnesota are open for business.
o Wire purchases are completed when wired payment is received and we accept
the purchase.
o Wire investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to be credited
that day. Otherwise your purchase will be processed the next business day.
o AECC, AEFC and its other subsidiaries are not responsible for any delays
that occur in wiring funds, including delays in processing by the bank.
o You must pay any fee the bank charges for wiring.
Full and partial withdrawals
You may withdraw your certificate for its full value or make a partial
withdrawal of $100 or more at any time. If you purchase this certificate for an
IRA, 401(k) or other retirement plan account, early withdrawals or cash payments
of interest taken prematurely may be subject to IRS penalty taxes.
o Complete withdrawal of your certificate is made by giving us proper
instructions. To complete these transactions, see "Two ways to request a
withdrawal or transfer."
o If your withdrawal request is received in the Minneapolis headquarters on a
business day before 3 p.m. Central time, it will be processed that day and
payment will be sent the next business day. Otherwise, your request will be
processed one business day later.
o Full and partial withdrawals of principal are subject to penalties,
described below.
o Interest payments in cash may be sent to you at the end of each certificate
month, quarter, or on a semiannual or annual basis.
o If a withdrawal reduces your account value to a point where we pay a lower
interest rate, you will earn the lower rate from the date of the
withdrawal.
o You may not otherwise make a partial withdrawal if it would reduce your
certificate balance to less than $1,000. If you request such a withdrawal,
we will contact you for revised instructions.
o Scheduled partial withdrawals may be made monthly, quarterly, semiannually,
annually and at term end.
o Withdrawals before the end of the certificate month will result in loss of
accrued interest on the amount withdrawn. You'll get the best result by
timing a withdrawal at the end of the certificate month.
Penalties for early withdrawal during a term: When you request a full or partial
withdrawal, we pay the amount you request:
o first from interest credited during the current term,
o then from the principal of your certificate.
Any additional investments or withdrawals during a term are added to or deducted
from the principal and are used in determining any withdrawal charges.
You may not make a partial withdrawal if it would reduce your certificate
balance to less than $1,000. If you request such a withdrawal, we will contact
you for revised instructions.
Withdrawal penalties: For withdrawals during the term of more than the interest
credited that term and over 10% of the certificate's principal, a 2% withdrawal
penalty will be deducted from the account's remaining balance.
For example, assume you invest $20,000 in a certificate and select a two-year
term. A little over a year later assume you have earned $1,600 in interest. The
following demonstrates how the withdrawal charge is deducted:
When you withdraw a specific amount of money, we would have to withdraw somewhat
more from your account to cover the withdrawal charge. For instance, suppose you
request a $5,000 check. The first $1,600 paid to you is interest earned that
term, the next $2,000 is 10% of principal, and not subject to the withdrawal
penalty, and the remaining $1,400 paid to you is principal over the 10% limit.
We would send you a check for $5,000 and deduct a withdrawal charge of $28.00
($1,400 x 2%) from the remaining balance of your certificate account. Your new
balance would be $16,572 ($21,600 - $5,028).
Total investments $20,000
Interest credited $ 1,600
--------
Total balance $21,600
Requested check $5,000
Credited interest withdrawn ($1,600)
10 percent of principal -- not subject to penalty ($2,000)
--------
Remaining portion of requested
withdrawal - subject to penalty $1,400
Withdrawal penalty percent 2%
Actual withdrawal penalty $ 28
Balance prior to withdrawal $21,600
Requested withdrawal check ($5,000)
Withdrawal penalty ($ 28)
----------
Total balance after withdrawal $16,572
Additionally, if you withdraw during a certificate month, you will not earn
interest for the month on the amount withdrawn.
Penalty exceptions: There is never a penalty for withdrawal of interest. In
addition, you may withdraw up to 10% of your principal during the term without a
withdrawal penalty. The principal available for the 10% no-penalty withdrawal
feature is the balance in the certificate at the beginning of the term plus or
minus any deposits or withdrawals made during the grace period.
The following example demonstrates how this feature works:
Suppose your certificate balance is $1,000. During the grace period you add
$500, bringing the principal to $1,500. At any time during the term you could
withdraw up to $150 of principal with no penalty.
Any additional investments or withdrawals following the grace period will not
change the principal amount used to determine the amount available for the 10%
no-penalty withdrawal feature.
The 2% penalty is waived upon death of the certificate owner. When this
certificate is owned by a revocable trust, this penalty also is waived upon
death of any grantor of the revocable trust. We will also waive withdrawal
penalties on withdrawals for IRA certificate accounts for your required
distributions. See "Retirement plans: special policies" below.
For more information on withdrawal charges, talk with your American Express
financial advisor or call the Client Service Organization at the number on the
back cover.
When your certificate term ends
Shortly before the end of the term you have selected for your certificate, we
will send you a notice indicating the interest rate that will apply to the
certificate for the new term. When your certificate term ends we will
automatically renew your certificate for the standard term (six, 12, 24, 30 or
36 month) nearest in length to your initial term. If your initial term is
equidistant from two standard terms, we will automatically renew your
certificate to the term with the longest maturity that is shorter than your
initial term. If you wish to select a different term, you must notify us in
writing before the end of the grace period. You will not be allowed to select a
term that would carry the certificate past its maturity date.
The interest rates that will apply to your new term will be those in effect on
the day the new term begins. We will send you a confirmation showing the rate of
interest that will apply to the new term you have selected. This rate of
interest will not be changed during that term.
If you want to withdraw your certificate without a withdrawal charge, you must
notify us within 15 calendar days following the end of a term. However, you will
lose any interest accrued since the end of the term.
You may also add to your investment within the 15 calendar days following the
end of your term. See "Additional investments" under "About the certificate."
Other full and partial withdrawal policies:
o If you request a partial or full withdrawal of a certificate recently
purchased or added to by a check or money order that is not guaranteed, we
will wait for your check to clear. Please expect a minimum of 10 days from
the date of your payment before AECC mails a check to you. We may mail a
check earlier if the bank provides evidence that your check has cleared.
o If your certificate is pledged as collateral, any withdrawal will be delayed
until we get approval from the secured party.
o Any payments to you may be delayed under applicable rules, regulations or
orders of the Securities and Exchange Commission (SEC).
Transfers to other accounts
You may transfer part or all of your certificate to any other American Express
Certificate or into another new or existing American Express Financial Advisors
Inc. account that has the same ownership (subject to any terms and conditions
that may apply).
Two ways to request a withdrawal or transfer
1
By phone
Call the Client Service Organization at the telephone numbers listed on the back
cover.
o Maximum phone request: $50,000.
o Transfers into an American Express Financial Advisors Inc. account with the
same ownership.
o A telephone withdrawal request will not be allowed within 30 days of a
phoned-in address change.
o We will honor any telephone withdrawal or transfer request believed to be
authentic and will use reasonable procedures to confirm authenticity.
You may request that telephone withdrawals not be authorized from your account
by writing the Client Service Organization.
2
By mail
Send your name, account number and request for a withdrawal or transfer to:
Regular mail:
American Express Financial Advisors Inc.
Client Service Organization
70250 AXP Financial Center
Minneapolis, MN 55474
Express mail:
American Express Financial Advisors Inc.
Client Service Organization
733 Marquette Ave.
Minneapolis, MN 55440-0010
Written requests are required for:
o Transactions over $50,000.
o Pension plans and custodial accounts where the minor has reached the age at
which custodianship should terminate.
o Transfers to another American Express Financial Advisors Inc. account with
different ownership (all current registered owners must sign the request).
Three ways to receive payment when you withdraw funds
1
By regular or express mail
o Mailed to address on record; please allow seven days for mailing.
o Payable to name(s) you requested.
o We will charge a fee if you request express mail delivery. We will deduct
the fee from your remaining certificate balance, provided that balance
would not be less than $1,000. If the balance would be less than $1,000, we
will deduct the fee from the proceeds of the withdrawal.
2
By wire
o Minimum wire withdrawal: $1,000.
o Request that money be wired to your bank.
o Bank account must be in same ownership as AECC account.
o Pre-authorization required. Complete the bank wire authorization section in
the application or use a form supplied by your American Express financial
advisor. All registered owners must sign.
o We may deduct a service fee from your balance (for partial withdrawals) or
from the proceeds of a full withdrawal.
3
By electronic transfer
o Available only for pre-authorized scheduled partial withdrawals and other
full or partial withdrawals.
o No charge.
o Deposited electronically in your bank account.
o Allow two to five business days from request to deposit.
Retirement plans: special policies
o If the certificate is purchased for a 401(k) plan or other qualified
retirement plan account, the terms and conditions of the certificate apply
to the plan as the owner of this certificate. However, the terms of the
plan, as interpreted by the plan trustee or administrator, will determine
how a participant's individual account under the plan is administered.
These terms may differ from the terms of the certificate.
o If your certificate is held in a Custodial Retirement Plan (or Keogh plan),
special rules may apply at maturity. If no other investment instructions
are provided directing how to handle your certificate at maturity, the full
value of the certificate will automatically transfer to a new or existing
cash management account according to rules outlined in the Custodial
Retirement Plan document.
o The annual custodial fee for IRA or non-401(k) qualified retirement plans
may be deducted from your certificate account. It may reduce the amount
payable at maturity or the amount received upon an early withdrawal.
o Retirement plan withdrawals may be subject to withdrawal penalties or loss
of interest even if they are not subject to federal tax penalties.
o We will waive withdrawal penalties on withdrawals for IRA certificate
accounts for your required distributions.
o If you withdraw all funds from your last account in an IRA at American
Express Trust Company, a termination fee will apply as set out in Your
Guide to IRAs, the IRS disclosure information received when you opened your
account.
o The IRA termination fee will be waived if a withdrawal occurs after you
have reached age 70 1/2 or upon the owner's death.
Withdrawal at death
If a certificate is surrendered upon the client's death, any applicable
surrender charge will be waived. In addition, if an IRA termination fee is
applicable, it will also be waived.
Transfer of ownership
While this certificate is not negotiable, AECC will transfer ownership upon
written notification to our Client Service Organization. However, if you have
purchased your certificate for an IRA, 401(k) plan or other qualified retirement
plan, you may be unable to transfer or assign the certificate without losing the
account's favorable tax status. Please consult your tax advisor.
For more information
For information on purchases, withdrawals, exchanges, transfers of ownership,
proper instructions and other service questions regarding your certificate,
please consult your American Express financial advisor or call the Client
Service Organization at the telephone numbers listed on the back cover. If you
purchase your certificate other than through a financial advisor, you may be
given different purchase and withdrawal instructions.
Taxes on your earnings
Interest on your certificate is taxable when credited to your account. Each
calendar year we provide the certificate account owner and the IRS with reports
of all earnings equal to and over $10 (Form 1099). Withdrawals are reported to
the certificate account owner and the IRS on Form 1099-B, "Proceeds from Broker
Transactions."
Retirement accounts
If you are using the certificate as an investment for an IRA, 401(k) plan
account or other qualified retirement plan account, income tax rules for your
IRA or qualified plan apply. Generally, you will pay no income taxes on your
investment's earnings -- and, in many cases, on part or all of the investment
itself -- until you begin to make withdrawals.
AECC will withhold federal income taxes of 10% on IRA withdrawals unless you
tell us not to. AECC is required to withhold federal income taxes of 20% on most
other qualified plan distributions, unless the distribution is directly rolled
over to another qualified plan or IRA.
Withdrawals from retirement accounts are generally subject to a penalty tax of
10% by the IRS if you make them before age 59 1/2, unless you are disabled or if
they are made by your beneficiary in the event of your death. Other exceptions
may also apply. Also, withdrawals of principal during a certificate month may be
subject to the certificate's provision for loss of interest.
Consult your tax advisor to see how these rules apply to you before you request
a distribution from your plan or IRA.
Gifts to minors
The certificate may be given to a minor under either the Uniform Gifts or
Uniform Transfers to Minors Act (UGMA/UTMA), whichever applies in your state.
UGMAs/UTMAs are irrevocable. Generally, under federal tax laws, income over
$1,400 for the year 2000 on property owned by children under age 14 will be
taxed at the parents' marginal tax rate, while income on property owned by
children 14 or older will be taxed at the child's rate.
Your TIN and backup withholding: As with any financial account you open, you
must list your current and correct TIN, which is either your Social Security or
Employer Identification number. You must certify your TIN under penalties of
perjury on your application when you open an account.
If you don't provide the correct TIN, you could be subject to backup withholding
of 31% of your interest earnings. You could also be subject to further
penalties, such as:
o a $50 penalty for each failure to supply your correct TIN;
o a civil penalty of $500 if you make a false statement that results in no
backup withholding; and
o criminal penalties for falsifying information.
You could also be subject to backup withholding because you failed to report
interest on your tax return as required.
To help you determine the correct TIN to use on various types of accounts,
please use this chart:
How to determine the correct TIN
For this type of account: Use the Social Security or Employer Identification
Number of:
- ------------------------------------------------------- -----------------------------------------------------
Individual or joint account The individual or one of the owners listed on the
joint account
- ------------------------------------------------------- -----------------------------------------------------
Custodian account of a minor The minor
(Uniform Gifts/Transfers to Minors Act)
- ------------------------------------------------------- -----------------------------------------------------
A revocable living trust The grantor-trustee
(the person who puts the money into the trust)
- ------------------------------------------------------- -----------------------------------------------------
An irrevocable trust, pension trust or estate The legal entity
(not the personal representative or trustee, unless
no legal entity is designated in the account title)
- ------------------------------------------------------- -----------------------------------------------------
Sole proprietorship The owner
- ------------------------------------------------------- -----------------------------------------------------
Partnership The partnership
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Corporate The corporation
- ------------------------------------------------------- -----------------------------------------------------
Association, club or tax-exempt organization The organization
- ------------------------------------------------------- -----------------------------------------------------
For details on TIN requirements, ask your financial advisor or contact your
local American Express Financial Advisors Inc. office for federal Form W-9,
"Request for Taxpayer Identification Number and Certification." You also may
obtain the form on the Internet at (http://www.irs.gov/prod/forms_pub/).
Foreign investors
If you are not a citizen or resident of the United States (nonresident alien),
you must supply AECC with Form W-8, Certificate of Foreign Status, when you
purchase your certificate. You must also supply both a current mailing address
and an address of foreign residency, if different. AECC will not accept
purchases of certificates by nonresident aliens without an appropriately
certified Form W-8 (or approved substitute).
Interest on the certificate is "portfolio interest" as defined in U.S. Internal
Revenue Code Section 871(h) if earned by a nonresident alien. Even though your
interest income is not taxed by the U.S. government, it will be reported at year
end to you and to the U.S. government on a Form 1042S, Foreign Person's U.S.
Source Income Subject to Withholding. The United States participates in various
tax treaties with foreign countries, which provide for sharing of tax
information.
Tax treatment of your investment
Interest paid on your certificate is "portfolio interest" as defined in U.S.
Internal Revenue Code Section 871(h) if earned by a nonresident alien who has
supplied the Issuer with Form W-8, Certificate of Foreign Status. Form W-8 must
be supplied with both a current mailing address and an address of foreign
residency, if different. The Issuer will not accept purchases of certificates by
nonresident aliens without an appropriately certified Form W-8 (or approved
substitute). The Form W-8 in effect before January 1, 2001, must be resupplied
every three calendar years. If you have supplied a Form W-8 that certifies that
you are a nonresident alien, the interest income will be reported at year end to
you and to the U.S. government on a Form 1042-S, Foreign Person's U.S. Source
Income Subject to Withholding. Your interest income will be reported to the IRS
even though it is not taxed by the U.S. government. The United States
participates in various tax treaties with foreign countries. Those treaties
provide that tax information may be shared upon request between the United
States and such foreign governments.
Changes in tax regulation
The U.S. Internal Revenue Service has issued new regulations changing the
certification requirements for nonresident aliens. As a result of the changes,
new Forms W-8 have been designed and are available for use. American Express
Certificate Company will need the new forms on file for all clients by January
1, 2001. Depending on your status, you may provide us with any one of four new
Forms W-8. Most clients will use Form W-8BEN, Certificate of Foreign Status of
Beneficial Owner for United States Tax Withholding, but consult your tax advisor
to ensure that you are using the correct form. The new Forms W-8 must be
resupplied every four calendar years, up from three years with the current form.
A few other changes may affect you. Foreign trusts must apply for a permanent
U.S. individual tax identification number (ITIN). Individuals applying for
benefits under a tax treaty will have additional requirements.
Withholding taxes
If you fail to provide a Form W-8 as required above, you will be subject to
backup withholding on interest payments and withdrawals from certificates.
Estate tax
If you are a nonresident alien and you die while owning a certificate, then,
depending on the circumstances, AECC generally will not act on instructions with
regard to the certificate unless AECC first receives, at a minimum, a statement
from persons AECC believes are knowledgeable about your estate. The statement
must be satisfactory to AECC and must tell us that, on your date of death, your
estate did not include any property in the United States for U.S. estate tax
purposes. In other cases, we generally will not take action regarding your
certificate until we receive a transfer certificate from the IRS or evidence
satisfactory to AECC that the estate is being administered by an executor or
administrator appointed, qualified and acting within the United States. In
general, a transfer certificate requires the opening of an estate in the United
States and provides assurance that the IRS will not claim your certificate to
satisfy estate taxes.
Trusts: If the investor is a trust, the policies and procedures described above
will apply with regard to each grantor who is a nonresident alien.
Important: The information in this prospectus is a brief and selective summary
of certain federal tax rules that apply to this certificate and is based on
current law and practice. Tax matters are highly individual and complex.
Investors should consult a qualified tax advisor about their own position.
How your money is used and protected
Invested and guaranteed by AECC
AECC, a wholly owned subsidiary of AEFC issues and guarantees the American
Express Flexible Savings Certificate. We are by far the largest issuer of face
amount certificates in the United States, with total assets of more than $____
billion and a net worth in excess of $____ million on Dec. 31, 1999.
We back our certificates by investing the money received and keeping the
invested assets on deposit. Our investments generate interest and dividends, out
of which we pay:
o interest to certificate owners,
o and various expenses, including taxes, fees to AEFC for advisory and other
services, distribution fees to American Express Financial Advisors Inc. and
American Express Service Corporation (AESC), and selling agent fees to
selling agents.
For a review of significant events relating to our business, see "Management's
discussion and analysis of financial condition and results of operations." No
national rating agency rates our certificates.
Most banks and thrifts offer investments known as CDs that are similar to our
certificates in many ways. Early withdrawals of bank CDs often result in
penalties. Banks and thrifts generally have federal deposit insurance for their
deposits and lend much of the money deposited to individuals, businesses and
other enterprises. Other financial institutions and some insurance companies may
offer investments with comparable combinations of safety and return on
investment.
Regulated by government
Because the American Express Flexible Savings Certificate is a security, its
offer and sale are subject to regulation under federal and state securities
laws. (The American Express Flexible Savings Certificate is a face-amount
certificate. It is not a bank product, an equity investment, a form of life
insurance or an investment trust.)
The federal Investment Company Act of 1940 requires us to keep investments on
deposit in a segregated custodial account to protect all of our outstanding
certificates. These investments back the entire value of your certificate
account. Their amortized cost must exceed the required carrying value of the
outstanding certificates by at least $250,000. As of Dec. 31, 1999, the
amortized cost of these investments exceeded the required
carrying value of our outstanding certificates by more than $___ million. The
law requires us to use amortized cost for these regulatory purposes. Among other
things, the law permits Minnesota statutes to govern qualified assets of AECC as
described in Note 2 to the financial statements. In general, amortized cost is
determined by systematically increasing the carrying value of a security if
acquired at a discount, or reducing the carrying value if acquired at a premium,
so that the carrying value is equal to maturity value on the maturity date.
As a condition to regulatory relief from the SEC, AECC has agreed to maintain
capital and surplus equal to 5% of outstanding liabilities on certificates (not
including loans made on certificates in accordance with terms of some
certificates that no longer are offered by AECC). AECC is not obligated to
continue to rely on the relief and continue to comply with the conditions of the
relief. Similarly, AECC has entered into a written, informal agreement with the
Minnesota Commerce Department to maintain capital equal to 5% of the assets of
AECC (less any loans on outstanding certificates). When computing its capital,
AECC values its assets on the basis of statutory accounting for insurance
companies rather than generally accepted accounting principles.
Backed by our investments
Our investments are varied and of high quality. This was the composition of our
portfolio as of Dec. 31, 1999:
Type of investment Net amount invested
Corporate and other bonds
Government agency bonds
Preferred stocks
Mortgages
Municipal bonds
As of Dec. 31, 1999 about __% of our securities portfolio (including bonds and
preferred stocks) is rated investment grade. For additional information
regarding securities ratings, please refer to Note 3B to the financial
statements.
Most of our investments are on deposit with American Express Trust Company,
Minneapolis, although we also maintain separate deposits as required by certain
states. American Express Trust Company is a wholly owned subsidiary of AEFC.
Copies of our Dec. 31, 1999 schedule of Investments in Securities of
Unaffiliated Issuers are available upon request. For comments regarding the
valuation, carrying values and unrealized appreciation (depreciation) of
investment securities, see Notes 1, 2 and 3 to the financial statements.
Investment policies
In deciding how to diversify the portfolio -- among what types of investments in
what amounts -- the officers and directors of AECC use their best judgment,
subject to applicable law. The following policies currently govern our
investment decisions:
Debt securities-
Most of our investments are in debt securities as referenced in the table in
"Backed by our investments" under "How your money is used and protected."
The price of bonds generally falls as interest rates increase, and rises as
interest rates decrease. The price of a bond also fluctuates if its credit
rating is upgraded or downgraded. The price of bonds below investment grade may
react more to whether a company can pay interest and principal when due than to
changes in interest rates. They have greater price fluctuations, are more likely
to experience a default, and sometimes are referred to as junk bonds. Reduced
market liquidity for these bonds may occasionally make it more difficult to
value them. In valuing bonds, AECC relies both on independent rating agencies
and the investment manager's credit analysis. Under normal circumstances, at
least 85% of the securities in AECC's portfolio will be rated investment grade,
or in the opinion of AECC's investment advisor will be the equivalent of
investment grade. Under normal circumstances, AECC will not purchase any
security rated below B- by Moody's Investors Service, Inc. or
Standard & Poor's Corporation. Securities that are subsequently downgraded in
quality may continue to be held by AECC and will be sold only when AECC believes
it is advantageous to do so.
As of Dec. 31, 1999, AECC held about __% of its investment portfolio (including
bonds, preferred stocks and mortgages) in investments rated below investment
grade.
Purchasing securities on margin -
We will not purchase any securities on margin or participate on a joint basis or
a joint-and-several basis in any trading account in securities.
Commodities -
We have not and do not intend to purchase or sell commodities or commodity
contracts except to the extent that transactions described in "Financial
transactions including hedges" in this section may be considered commodity
contracts.
Underwriting -
We do not intend to engage in the public distribution of securities issued by
others. However, if we purchase unregistered securities and later resell them,
we may be considered an underwriter (selling securities for others) under
federal securities laws.
Borrowing money -
From time to time we have established a line of credit with banks if management
believed borrowing was necessary or desirable. We may pledge some of our assets
as security. We may occasionally use repurchase agreements as a way to borrow
money. Under these agreements, we sell debt securities to our lender, and
repurchase them at the sales price plus an agreed-upon interest rate within a
specified period of time.
Real estate -
We may invest in limited partnership interests in limited partnerships that
either directly, or indirectly through other limited partnerships, invest in
real estate. We may invest directly in real estate. We also invest in mortgage
loans secured by real estate. We expect that equity investments in real estate,
either directly or through a subsidiary of AECC, will be less than 5% of AECC's
assets.
Lending securities -
We may lend some of our securities to broker-dealers and receive cash equal to
the market value of the securities as collateral. We invest this cash in
short-term securities. If the market value of the securities goes up, the
borrower pays us additional cash. During the course of the loan, the borrower
makes cash payments to us equal to all interest, dividends and other
distributions paid on the loaned securities. We will try to vote these
securities if a major event affecting our investment is under consideration. We
expect that outstanding securities loans will not exceed 10% of AECC's assets.
When-issued securities-
Some of our investments in debt securities are purchased on a when-issued or
similar basis. It may take as long as 45 days or more before these securities
are available for sale, issued and delivered to us. We generally do not pay for
these securities or start earning on them until delivery. We have established
procedures to ensure that sufficient cash is available to meet when-issued
commitments. When-issued securities are subject to market fluctuations and they
may affect AECC's investment portfolio the same as owned securities.
Financial transactions including hedges-
We buy or sell various types of options contracts for hedging purposes or as a
trading technique to facilitate securities purchases or sales. We may buy
interest rate caps for hedging purposes. These pay us a return if interest rates
rise above a specified level. If interest rates do not rise above a specified
level, the interest rate caps do not pay us a return. AECC may enter into other
financial transactions, including futures and other derivatives, for the purpose
of managing the interest rate exposures associated with AECC's assets or
liabilities. Derivatives are financial instruments whose performance is derived,
at least in part, from the performance of an underlying asset, security or
index. A small change in the value of the underlying asset, security or index
may
cause a sizable gain or loss in the fair value of the derivative. We do not use
derivatives for speculative purposes.
Illiquid securities -
A security is illiquid if it cannot be sold in the normal course of business
within seven days at approximately its current market value. Some investments
cannot be resold to the U.S. public because of their terms or government
regulations. All securities, however can be sold in private sales, and many may
be sold to other institutions and qualified buyers or on foreign markets. AECC's
investment advisor will follow guidelines established by the board and consider
relevant factors such as the nature of the security and the number of likely
buyers when determining whether a security is illiquid. No more than 15% of
AECC's investment portfolio will be held in securities that are illiquid. In
valuing its investment portfolio to determine this 15% limit, AECC will use
statutory accounting under an SEC order. This means that, for this purpose, the
portfolio will be valued in accordance with applicable Minnesota law governing
investments of life insurance companies, rather than generally accepted
accounting principles.
Restrictions -
There are no restrictions on concentration of investments in any particular
industry or group of industries or on rates of portfolio turnover.
How your money is managed
Relationship between AECC and American Express Financial Corporation
AECC was originally organized as Investors Syndicate of America, Inc., a
Minnesota corporation, on Oct. 15, 1940, and began business as an issuer of face
amount investment certificates on Jan. 1, 1941. The company became a Delaware
corporation on Dec. 31, 1977, changed its name to IDS Certificate Company on
April 2, 1984, and to American Express Certificate Company on April 26, 2000.
AECC files reports on Form 10K and 10-Q with the SEC. The public may read and
copy materials we file with the SEC at the SEC's Public Reference Room at 450
Fifth Street, N.W., Washington, D.C. 20549. The public may obtain information on
the operation of the public reference room by calling the SEC at 1-800-SEC-0330.
The SEC maintains an Internet site (http://www.sec.gov) that contains reports,
proxy and information statements, and other information regarding issuers that
file electronically with the SEC.
Before AECC was created, AEFC (formerly known as IDS Financial Corporation), our
parent company, had issued similar certificates since 1894. As of Jan. 1, 1995,
IDS Financial Corporation changed its name to AEFC. AECC and AEFC have never
failed to meet their certificate payments.
During its many years in operation, AEFC has become a leading manager of
investments in mortgages and securities. As of Dec. 31, 1999, AEFC managed or
administered investments, including its own, of more than $___ billion. American
Express Financial Advisors Inc., a wholly owned subsidiary of AEFC, provides a
broad range of financial planning services for individuals and businesses
through its nationwide network of more than 180 offices and more than 9,000
financial advisors. American Express Financial Advisors' financial planning
services are comprehensive, beginning with a detailed written analysis that's
tailored to your needs. Your analysis may address one or all of these six
essential areas: financial position, protection planning, investment planning,
income tax planning, retirement planning and estate planning.
AEFC itself is a wholly owned subsidiary of American Express Company, a
financial services company with executive offices at American Express Tower,
World Financial Center, New York, NY 10285. American Express Company is a
financial services company engaged through subsidiaries in other businesses
including:
o travel related services (including American Express(R) Card operations
through American Express Travel Related Services Company, Inc. and its
subsidiaries); and
o international banking services (through American Express Bank Ltd. and its
subsidiaries) and Travelers Cheque and related services.
Capital structure and certificates issued
AECC has authorized, issued and has outstanding 150,000 shares of common stock,
par value of $10 per share. AEFC owns all of the outstanding shares.
As of the fiscal year ended Dec. 31, 1999, AECC had issued (in face amount)
$__________ of installment certificates and $__________ of single payment
certificates. As of Dec. 31, 1999, AECC had issued (in face amount) $__________
of installment certificates and $__________ of single payment certificates since
its inception in 1941.
Investment management and services
Under an Investment Advisory and Services Agreement, AEFC acts as our investment
advisor and is responsible for:
o providing investment research,
o making specific investment recommendations; and
o executing purchase and sale orders according to our policy of obtaining the
best price and execution.
All these activities are subject to direction and control by our board of
directors and officers. Our agreement with AEFC requires annual renewal by our
board, including a majority of directors who are not interested persons of AEFC
or AECC as defined in the federal Investment Company Act of 1940.
For its services, we pay AEFC a monthly fee, equal on an annual basis to a
percentage of the total book value of certain assets (included assets).
Advisory and services fee computation
Included assets Percentage of total book value
First $250 million 0.750%
Next 250 million 0.650
Next 250 million 0.550
Next 250 million 0.500
Any amount over 1 billion 0.107
Included assets are all assets of AECC except mortgage loans, real estate, and
any other asset on which we pay an outside advisory or service fee.
Advisory and services fee for the past three years
Percentage of
Year Total fees included assets
1999 $ _.__%
1998 $ 9,084,332 0.24
1997 $17,232,602 0.50
Estimated advisory and services fees for 2000 are $__________.
Other expenses payable by AECC: The Investment Advisory and Services Agreement
provides that we will pay:
o costs incurred by us in connection with real estate and mortgages;
o taxes;
o depository and custodian fees;
o brokerage commissions;
o fees and expenses for services not covered by other agreements and provided
to us at our request, or by requirement, by attorneys, auditors, examiners
and professional consultants who are not officers or employees of AEFC;
o fees and expenses of our directors who are not officers or employees of
AEFC;
o provision for certificate reserves (interest accrued on certificate owner
accounts); and
o expenses of customer settlements not attributable to sales function.
Distribution
Under a Distribution Agreement with American Express Financial Advisors Inc. we
pay for the distribution of this certificate as follows:
o 0.20% of the initial payment on the issue date of the certificate, and
o 0.20% of the certificate's reserve at the beginning of the second and
subsequent quarters from issue date.
This fee is not assessed to your certificate account.
For certificates paying a special promotional coupon rate described in "Rates
for new purchases" under "About the certificate," American Express Financial
Advisors Inc. waives its distribution fee.
Total distribution fees paid to American Express Financial Advisors Inc. for all
series of certificates amounted to $________ during the year ended Dec. 31,
1999. We expect to pay American Express Financial Advisors Inc. distribution
fees amounting to $________ during 2000.
See Note 1 to financial statements regarding deferral of distribution fee
expense.
In addition, AECC may pay distributors additional compensation for distribution
activities under certain circumstances. From time to time, AECC may pay or
permit other promotional incentives, in cash or credit or other compensation.
American Express Financial Advisors Inc. pays commissions to its financial
advisors and pays other selling expenses in connection with services to us. Our
board of directors, including a majority of directors who are not interested
persons of American Express Financial Advisors Inc., AESC or AECC, approved
these distribution agreements.
Transfer agent
Under a Transfer Agency Agreement, American Express Client Service Corporation
(AECSC), a wholly owned subsidiary of AEFC, maintains certificate owner accounts
and records. AECC pays AECSC a monthly fee of one-twelfth of $10.353 per
certificate owner account for this service.
Employment of other American Express affiliates
AEFC may employ an affiliate of American Express Company as executing broker for
our portfolio transactions only if:
o we receive prices and executions at least as favorable as those offered by
qualified independent brokers performing similar services;
o the affiliate charges us commissions consistent with those charged to
comparable unaffiliated customers for similar transactions; and
o the affiliate's employment is consistent with the terms of the current
Investment Advisory and Services Agreement and federal securities laws.
Directors and officers
AECC's sole shareholder, AEFC, elects the board of directors that oversees
AECC's operations. The board annually elects the directors, chairman, president
and controller for a term of one year. The president appoints the other
executive officers.
We paid a total of $__________ during 1999 to directors not employed by AEFC.
Board of directors
Rodney P. Burwell
Born in 1939. Director beginning in 1999. Chairman, Xerxes Corporation
(fiberglass storage tanks).
Director, Fairview Corporation.
Charles W. Johnson
Born in 1929. Director since 1989. Director, Communications Holdings, Inc.
Acting president of Fisk University from 1998 to 1999. Former vice president and
group executive, Industrial Systems, with Honeywell, Inc. Retired 1989.
Jean B. Keffeler
Born in 1945. Director beginning in 1999. Independent management consultant.
Richard W. Kling
Born in 1940. Director since 1996. Chairman of the board of directors from 1996
to 2000. Director of IDS Life Insurance Company since 1984; president since
1994. Executive vice president of Marketing and Products of AEFC from 1988 to
1994. Senior vice president of AEFC since 1994. Director of IDS Life Series
Fund, Inc. and member of the board of managers of IDS Variable Annuity Funds A
and B.
Thomas R. McBurney
Born in 1938. Director beginning in 1999. President, McBurney Management
Advisors. Director, The Valspar Corporation (paints), Wenger Corporation,
Allina, Space Center Enterprises and Greenspring Corporation.
Paula R. Meyer*
Born in 1954. President since 1998. Piper Capital Management (PCM) President
from 1997 to 1998. PCM Director of Marketing from 1995 to 1997. PCM Director of
Retail Marketing from 1993 to 1995.
Pamela J. Moret
Born in 1956. Director since December 1999. Chair of the board of directors
since January 2000. Senior vice president - Investment Products since November
1999. Vice president - Variable Assets & Services from 1997 to 1999. Vice
president - Retail Services Group from 1996 to 1997. Vice president
Communications from 1992 to 1996. Various attorney positions in General
Counsel's Office from 1982 to 1992.
*"Interested Person" of AECC as that term is defined in Investment Company Act
of 1940.
Executive officers
Paula R. Meyer
Born in 1954. President since 1998.
Jeffrey S. Horton
Born in 1961. Vice president and treasurer since 1997. Vice president and
corporate treasurer of AEFC since 1997. Controller, American Express
Technologies-Financial Services of AEFC from July 1997 to December 1997.
Controller, Risk Management Products of AEFC from 1994 to 1997. Director of
finance and analysis, Corporate Treasury of AEFC from 1990 to 1994.
Timothy S. Meehan
Born in 1957. Secretary since 1995. Secretary of AEFC and American Express
Financial Advisors Inc. since 1995. Senior counsel to AEFC since 1995. Counsel
from 1990 to 1995.
Lorraine R. Hart
Born in 1951. Vice president - Investments since 1994. Vice president Insurance
Investments of AEFC since 1989. Vice president - Investments of IDS Life
Insurance Company since 1992.
Bruce A. Kohn
Born in 1951. Vice president and general counsel since 1993. Senior counsel to
AEFC since 1996. Counsel to AEFC from 1992 to 1996. Associate counsel from 1987
to 1992.
Philip C. Wentzel
Born in 1961. Vice president and controller of AECC since January 2000. Vice
president - Finance, Insurance Products of AEFC since 1997. Vice president and
controller of IDS Life since 1998. Director, Financial Reporting and Analysis -
IDS Life from 1992 to 1997.
The officers and directors as a group beneficially own less than 1% of the
common stock of American Express Company.
AECC has provisions in its bylaws relating to the indemnification of its
officers and directors against liability, as permitted by law. Insofar as
indemnification for liabilities arising under the Securities Act of 1933 (the
1933 Act) may be permitted to directors, officers or persons controlling the
registrant pursuant to the foregoing provisions, the registrant has been
informed that in the opinion of the SEC such indemnification is against public
policy as expressed in the 1933 Act and is therefore unenforceable.
Independent auditors
A firm of independent auditors audits our financial statements at the close of
each fiscal year (Dec. 31). Copies of our annual financial statements (audited)
and semiannual financial statements (unaudited) are available to any certificate
owner upon request.
Ernst & Young LLP, Minneapolis, has audited our financial statements for each of
the years in the three-year period ended Dec. 31, 1999 These statements are
included in this prospectus. Ernst & Young LLP is also the auditor for American
Express Company, the parent company of AEFC and AECC.
American Express Certificates
Other certificates issued by AECC: Your American Express financial advisor can
give you more information on five other certificates issued by AECC. These
certificates offer a wide range of investment terms and features.
American Express Cash Reserve Certificate - A single payment certificate that
permits additional investments on which AECC guarantees interest in advance for
a three-month term.
American Express Installment Certificate - An installment payment certificate
that declares interest in advance for a three-month period and offers bonuses in
the third through sixth years for regular investments.
American Express Market Strategy Certificate-A certificate that pays interest at
a fixed rate or linked to one-year stock market performance, as measured by a
broad market index, for a series of one-year terms starting every month or at
other intervals the client selects.
American Express Preferred Investors Certificate - A single payment certificate
that combines a competitive fixed rate of return with AECC's guarantee of
principal for large investments of $250,000 to $5 million.
American Express Stock Market Certificate - A single payment certificate that
calculates all or part of your interest based on stock market performance, as
measured by a broad market index, with AECC's guarantee of return of principal.
Appendix
Description of corporate bond ratings
Bond ratings concern the quality of the issuing corporation. They are not an
opinion of the market value of the security. Such ratings are opinions on
whether the principal and interest will be repaid when due. A security's rating
may change which could affect its price. Ratings by Moody's Investors Service,
Inc. are Aaa, Aa, A, Baa, Ba, B, Caa, Ca and C. Ratings by Standard & Poor's
Corporation are AAA, AA, A, BBB, BB, B, CCC, CC, C and D.
Aaa/AAA - Judged to be of the best quality and carry the smallest degree of
investment risk. Interest and principal are secure.
Aa/AA - Judged to be high-grade although margins of protection for interest and
principal may not be quite as good as Aaa or AAA rated securities.
A - Considered upper-medium grade. Protection for interest and principal is
deemed adequate but may be susceptible to future impairment.
Baa/BBB - Considered medium-grade obligations. Protection for interest and
principal is adequate over the short-term; however, these obligations may have
certain speculative characteristics.
Ba/BB - Considered to have speculative elements. The protection of interest and
principal payments may be very moderate.
B - Lack characteristics of more desirable investments. There may be small
assurance over any long period of time of the payment of interest and principal.
Caa/CCC - Are of poor standing. Such issues may be in default or there may be
risk with respect to principal or interest.
Ca/CC - Represent obligations that are highly speculative. Such issues are often
in default or have other marked shortcomings.
C - Are obligations with a higher degree of speculation. These securities have
major risk exposures to default.
D - Are in payment default. The D rating is used when interest payments or
principal payments are not made on the due date.
Non-rated securities will be considered for investment. When assessing each
non-rated security, AECC will consider the financial condition of the issuer or
the protection afforded by the terms of the security.
(Back Cover)
Quick telephone reference*
Client Service Organization
Withdrawals, transfers, inquiries
National/Minnesota: 800-862-7919
TTY Service
For the hearing impaired
800-846-4852
American Express Easy Access Line
Account value, cash transaction information, current rate information (automated
response, Touchtone(R) phones only)
National/Minnesota: 800-862-7919
Mpls./St. Paul area: 800-862-7919
American Express Flexible Savings Certificate
IDS Tower 10
Minneapolis, MN 55440-0010
Web site address: http://www.americanexpress.com/advisors
Distributed by American Express Financial Advisors Inc.
6013
PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
Item
Number
Item 13. Other Expenses of Issuance and Distribution.
The expenses in connection with the issuance and distribution
of the securities being registered are to be borne by the
registrant.
Item 14. Indemnification of Directors and Officers.
The By-Laws of IDS Certificate Company provide that it shall
indemnify any person who was or is a party or is threatened to
be made a party, by reason of the fact that he was or is a
director, officer, employee or agent of the company, or is or
was serving at the direction of the company, or any
predecessor corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought, to the
fullest extent permitted by the laws of the state of Delaware,
as now existing or hereafter amended.
The By-Laws further provide that indemnification questions
applicable to a corporation which has been merged into the
company relating to causes of action arising prior to the date
of such merger shall be governed exclusively by the applicable
laws of the state of incorporation and by the by-laws of such
merged corporation then in effect. See also Item 17.
Item 15. Recent Sales of Unregistered Securities.
(a) Securities Sold
1996 IDS Special Deposits* 41,064,846.74
1997 American Express Special Deposits 182,788,631.00
1998 American Express Special Deposits 91,416,078.00
1999 American Express Special Deposits 50,132,542.00
* Renamed American Express Special Deposits in April 1996.
(b) Underwriters and other purchasers
American Express Special Deposits are marketed by American Express Bank Ltd.
(AEB), an affiliate of IDS Certificate Company, to private banking clients of
AEB in the United Kingdom and Hong Kong.
(c) Consideration
All American Express Special Deposits were sold for cash. The aggregate offering
price was the same as the amount sold in the table above. Aggregate marketing
fees to AEB were $301,946.44 in 1996, $592,068.70 in 1997, $967,791.95 in 1998
and $877,981.60 in 1999.
(d) Exemption from registration claimed
American Express Special Deposits are marketed, pursuant to the exemption in
Regulation S under the Securities Act of 1933, by AEB in the United Kingdom and
Hong Kong to persons who are not U.S. persons, as defined in Regulation S.
Item 16. Exhibits and Financial Statement Schedules.
(a) Exhibits
1. (a) Copy of Distribution Agreement dated November 18, 1988,
between Registrant and IDS Financial Services Inc., filed
electronically as Exhibit 1(a) to the Registration Statement
No. 33-26844, for the American Express International
Investment Certificate (now called, the IDS Investors
Certificate) is incorporated herein by reference.
(b) Copy of Distribution Agreement dated March 29, 1996 between
Registrant and American Express Service Corporation filed
electronically as Exhibit 1(b) to Post-Effective Amendment
No. 17 to Registration Statement No. 2-95577 is incorporated
herein by reference.
2. Not Applicable.
3. (a) Certificate of Incorporation, dated December 31, 1977, filed
electronically as Exhibit 3(a) to Post-Effective Amendment
No. 10 to Registration Statement No. 2-89507, is
incorporated herein by reference.
(b) Certificate of Amendment, dated April 2, 1984 filed
electronically as Exhibit 3(b) to Post-Effective Amendment
No. 10 to Registration Statement No. 2-89507, is
incorporated herein by reference.
(c) Certificate of Amendment, dated September 12, 1995, filed
electronically as Exhibit 3(c) to Post-Effective Amendment
No. 44 to Registration Statement No. 2-55252, is
incorporated herein by reference.
(d) Certificate of Amendment, dated April 30, 1999, filed
electronically as Exhibit 3(a) to Registrant's March 31,
1999 Quarterly Report on Form 10-Q is incorporated herein by
reference.
(e) Current By-Laws, filed electronically as Exhibit 3(e) to
Post-Effective Amendment No. 19 to Registration Statement
No. 33-26844, are incorporated herein by reference.
4. Not Applicable.
5. An opinion and consent of counsel as to the legality of the
securities being registered, filed electronically as Exhibit
16(a)5 to Post-Effective Amendment No. 24 to Registration
Statement No. 2-95577 is incorporated by reference.
6. through 9. -- None.
10. (a) Investment Advisory and Services Agreement between
Registrant and IDS/American Express Inc. dated January 12,
1984, filed electronically as Exhibit 10(b) to Registrant's
Post-Effective Amendment No. 3 to Registration Statement No.
2-89507, is incorporated herein by reference.
(b) Depositary and Custodial Agreement dated September 30, 1985
between IDS Certificate Company and IDS Trust Company, filed
electronically as Exhibit 10(b) to Registrant's
Post-Effective Amendment No. 3 to Registration Statement No.
2-89507, is incorporated herein by reference.
(c) Foreign Deposit Agreement dated November 21, 1990, between
IDS Certificate Company and IDS Bank & Trust, filed
electronically as Exhibit 10(h) to Post-Effective Amendment
No. 5 to Registration Statement No. 33-26844, is
incorporated herein by reference.
(d) Selling Agent Agreement dated June 1, 1990, between American
Express Bank International and IDS Financial Services Inc.
for the American Express Investors and American Express
Stock Market Certificates, filed electronically as Exhibit
1(c) to the Post-Effective Amendment No. 5 to Registration
Statement No. 33-26844, is incorporated herein by reference.
(e) Marketing Agreement dated October 10, 1991, between
Registrant and American Express Bank Ltd., filed
electronically as Exhibit 1(d) to Post-Effective Amendment
No. 31 to Registration Statement 2-55252, is incorporated
herein by reference.
(f) Amendment to the Selling Agent Agreement dated December 12,
1994, between IDS Financial Services Inc. and American
Express Bank International, filed electronically as Exhibit
1(d) to Post-Effective Amendment No. 9 to Registration
Statement No. 33-26844, is incorporated herein by reference.
(g) Selling Agent Agreement dated December 12, 1994, between IDS
Financial Services Inc. and Coutts & Co. (USA)
International, filed electronically as Exhibit 1(e) to
Post-Effective Amendment No. 13 to Registration Statement
No. 2-95577, is incorporated herein by reference.
(h) Consulting Agreement dated December 12, 1994, between IDS
Financial Services Inc. and American Express Bank
International, filed electronically as Exhibit 16(f) to
Post-Effective Amendment No. 13 to Registration Statement
No. 2-95577 is incorporated herein by reference.
(i) Letter amendment dated January 9, 1997 to the Marketing
Agreement dated October 10, 1991, between Registrant and
American Express Bank Ltd. filed electronically as Exhibit
10(j) to Post-Effective Amendment No. 40 to Registration
Statement No. 2-55252, is incorporated herein by reference.
(j) Form of Letter amendment dated April 7, 1997 to the Selling
Agent Agreement dated June 1, 1990 between American Express
Financial Advisors Inc. and American Express Bank
International, filed electronically as Exhibit 10 (j) to
Post-Effective Amendment No. 14 to Registration Statement
33-26844, is incorporated herein by reference.
(k) Letter Agreement dated July 28, 1999 amending the Selling
Agent Agreement dated June 1, 1990, or a schedule thereto,
as amended, between American Express Financial Advisors Inc.
(formerly IDS Financial Services Inc.) and American Express
Bank International, filed electronically to Registrant's
June 30, 1999 Quarterly Report on Form 10-Q, is incorporated
herein by reference.
(l) Letter Agreement dated July 28, 1999, amending the Marketing
Agreement dated October 10, 1991, or a schedule thereto, as
amended, between IDS Certificate Company and American
Express Bank Ltd., filed electronically to Registrant's June
30, 1999 Quarterly Report on Form 10-Q, is incorporated
herein by reference.
(m) Selling Agent Agreement, dated March 10, 1999 between
American Express Financial Advisors Inc. and Securities
America, Inc., filed electronically as Exhibit 10 (l) to
Post-Effective Amendment No. 18 to Registration Statement
33-26844, is incorporated herein by reference.
11. through 22. -- None.
23. Consent of Independent Auditors' Report to be filed with a
subsequent post-effective amendment to this registration
statement.
24. (a) Officers' Power of Attorney, dated September 8, 1998, filed
electronically as Exhibit 24(a) to Post-Effective Amendment
No. 22 to Registration Statement No. 33-22503, is
incorporated herein by reference.
(b) Directors' Power of Attorney, dated April 26, 1999, filed
electronically as Exhibit 24(a) to Registrant's March 31,
1999 Quarterly Report is incorporated herein by reference.
(c) Director's Power of Attorney, dated December 21, 1999, filed
electronically as Exhibit 24(c) to Post-Effective Amendment
No. 19 to Registration Statement No. 33-26844, is
incorporated herein by reference.
25. through 27. -- None.
(b) The financial statement schedules for IDS Certificate Company will be filed
with a subsequent post-effective amendment to Registration Statement No.
2-55252 for Series D-1 Investment Certificate.
Item 17. Undertakings.
Without limiting or restricting any liability on the part of
the other, American Express Financial Advisors Inc. (formerly,
IDS Financial Services Inc.), as underwriter, will assume any
actionable civil liability which may arise under the Federal
Securities Act of 1933, the Federal Securities Exchange Act of
1934 or the Federal Investment Company Act of 1940, in
addition to any such liability arising at law or in equity,
out of any untrue statement of a material fact made by its
agents in the due course of their business in selling or
offering for sale, or soliciting applications for, securities
issued by the Company or any omission on the part of its
agents to state a material fact necessary in order to make the
statements so made, in the light of the circumstances in which
they were made, not misleading (no such untrue statements or
omissions, however, being
admitted or contemplated), but such liability shall be subject
to the conditions and limitations described in said Acts.
American Express Financial Advisors Inc. will also assume any
liability of the Company for any amount or amounts which the
Company legally may be compelled to pay to any purchaser under
said Acts because of any untrue statements of a material fact,
or any omission to state a material fact, on the part of the
agents of American Express Financial Advisors Inc. to the
extent of any actual loss to, or expense of, the Company in
connection therewith. The By-Laws of the Registrant contain a
provision relating to Indemnification of Officers and
Directors as permitted by applicable law.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has
duly caused this amendment to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Minneapolis and State of Minnesota, on
the 19th day, of January, 2000.
IDS CERTIFICATE COMPANY
By: /s/ Paula R. Meyer*
Paula R. Meyer, President
Pursuant to the requirements of the Securities Act of 1933, this amendment has
been signed below by the following persons in the capacities on the 19th day, of
January, 2000.
Signature Capacity
/s/ Paula R. Meyer* ** President and Director
Paula R. Meyer (Principal Executive Officer)
/s/ Jeffrey S. Horton* Vice President and Treasurer
Jeffrey S. Horton (Principal Financial Officer)
/s/ Jay C. Hatlestad* Vice President and Controller
Jay C. Hatlestad (Principal Accounting Officer)
/s/ Rodney P. Burwell** Director
Rodney P. Burwell
/s/ Charles W. Johnson** Director
Charles W. Johnson
/s/ Jean B. Keffeler** Director
Jean B. Keffeler
/s/ Richard W. Kling** Director
Richard W. Kling
/s/ Pamela J. Moret*** Director
Pamela J. Moret
/s/ Thomas R. McBurney** Director
Thomas R. McBurney
*Signed pursuant to Officers' Power of Attorney dated September 8, 1998 filed
electronically as Exhibit 24(a) to Post-Effective Amendment No. 22 to
Registration Statement No. 33-22503, incorporated herein by reference.
/s/ Bruce Kohn
- -------------------------.
Bruce A. Kohn
**Signed pursuant to Directors' Power of Attorney dated April 26, 1999 filed
electronically as Exhibit 24(a) to Registrant's March 31, 1999 Quarterly Report,
incorporated herein by reference.
/s/ Bruce Kohn
- -------------------------.
Bruce A. Kohn
***Signed pursuant to Director's Power of Attorney dated December 21, 1999 filed
electronically as Exhibit 24(c) to Post-Effective Amendment No. 19 to
Registration Statement No. 33-26844, incorporated herein by reference.
/s/ Bruce Kohn
- --------------------------
Bruce A. Kohn
January 19, 2000
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street NW
Washington, D.C. 20549-1004
Attn: Document Control -EDGAR
Ms. Patsy Mengiste
RE: IDS Certificate Company (IDSC)
Post-Effective Amendment No. 25
American Express Flexible Savings Certificate: 2-95577
Dear Ms. Mengiste:
Enclosed and filed electronically is Post-Effective Amendment No. 25 to the
above referenced registration statement. This amendment is filed under the
Securities Act of 1933 for IDSC.
As you may recall, we have filed this prospectus in the past as part of a joint
filing for which we used registration statement no. 2-95577, IDS Flexible
Savings Certificate. The most recent post-effective amendment number for that
registration statement was no. 24, which was filed on April 19, 1999.
Consequently, this filing uses no. 25 as the initial post-effective amendment
number.
The changes that have been made since Post-Effective Amendment No. 24 filed on
April 19, 1999 are redlined. Please note that we contemplate changing the name
of the company to American Express Certificate Company in April. Please also
note that we have removed from the second page of this and other prospectuses a
description of the Year 2000 risk factor.
Please direct your questions or comments on this filing to Terry Vestermark at
(612) 678-2132 or me at (612) 671-2221.
Thank you.
Bruce Kohn
Vice President and General Counsel
IDS Certificate Company
BK/TV/lal