2.1.4.5.3 Due-Bills and Due-Bill Checks
Due-bills are forms used when a security traded before the ex-date is delivered too late for transfer on or before the record date. They indicate that the next dividend paid will be passed along from the seller to the buyer. They are necessary because the person who receives the dividend is the owner of record on the record date, so in the case of a late transfer, the seller still holds the title when the dividend is sent out. Howe