Virgin Islands Demand Bond
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FAQ
The USVI is an organized, unincorporated territory of the United States, meaning it follows U.S. laws but also has its own local government. It also means that not all of the U.S. Constitution applies to the people living there.
Persons born in the U.S. Virgin Islands are United States citizens, and as a result do not go through the legal immigration procedures a typical West Indies immigrant would. Virgin Islanders in the U.S. are considered part of the Caribbean American community.
And generally, that's accurate. People born in any of the 50 states, one federal district and four major territories (Puerto Rico, the U.S. Virgin Islands, Guam and the Northern Mariana Islands) are automatically American citizens.
The USVI is an organized, unincorporated territory of the United States, meaning it follows U.S. laws but also has its own local government. It also means that not all of the U.S. Constitution applies to the people living there.
U.S. Virgin Islands The United States Virgin Islands are an unincorporated territory of the United States, meaning that only certain parts of the U.S. Constitution apply to its residents. Individuals born in the U.S. Virgin Islands are considered citizens of the United States.
Demand bonds are long-term debt issuances with demand ("put") provisions that require the issuer to repurchase the bonds upon notice from the bondholder at a price equal to the principal plus accrued interest.
Yet as early as the American Civil War, the U.S. was eyeing them as a possible economic and national security asset. This was because U.S. officials thought the islands could help secure American economic interests in the Caribbean.
Passports for U.S. Citizens are NOT required for the U.S. Virgin Islands, but you must be prepared to show evidence of citizenship upon leaving the territory (such as a government-issued photo ID or your passport). Citizens of countries other than the U.S. should follow U.S. travel regulations.
The US purchased the islands in 1917, when they were known as the Danish West Indies, hoping that they'd be an ideal strategic location for a naval base and would help secure the region surrounding the Panama Canal.
U.S. citizenship was conferred on U.S. Virgin Islanders in 1927. Federal authority over the new U.S. territory was placed in the Department of the Interior in 1931, where it resides.
