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Face Amount Certificate Company / FAC is a type of investment company that requires an investor to make fixed payments over time or to deposit a lump sum, and which will return to the investor a stated sum know as the face amount on a specific date.
Face amount certificates where once popular investments but have declined in popularity over the years. The face amount certificate will offer an investor the opportunity to invest for a specific need such as a child’s college education or retirement. A Face amount certificate or face amount company is a type of investment company and is regulated by the Investment Company Act of 1940.