How a memory coupon pays is set by the terms of each product. In one issuer's term sheet, when the share price is at or above the coupon level on an observation date, the note pays the coupon for that period and also the coupons that went unpaid since the last date on which a coupon was paid. Consider a hypothetical example in which one coupon is 30,000 yen and the share price is at or above the level after two consecutive unpaid periods. The note then pays the 30,000 yen for that period and the 60,000 yen for the two unpaid periods, 90,000 yen in all. In this term sheet, the coupon is calculated the same way on an early redemption date.
If the share price is never at or above the level on a later observation date, the unpaid coupons cannot be collected. With a conditional coupon that has no memory feature, the coupons for unpaid periods are not paid even if the share price is at or above the level on a later observation date.