### Question
How does CREDITOR COLLECTIVE ACTION define Capital Appreciation Bond?


### Answer
Under *48 U.S.C. § 2231*, **Capital Appreciation Bond** is defined as:

> a Bond that does not pay interest on a current basis, but for which interest amounts are added to principal over time as specified in the relevant offering materials for such Bond, including that the accreted interest amount added to principal increases daily

#### Citation:
  - *48 U.S.C. § 2231*
  - Heading: **CHAPTER 20-PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY > SUBCHAPTER VI-CREDITOR COLLECTIVE ACTION**

