Question

Give the Meaning of 'debentures Issued as Collateral Security'

Answer 1

It refers to a second line of security that is applicable for the original loan taken by the company.

If such a situation arises that the borrower fails to make payment of the original loan amount, then the collateral security can be realised.

Also read:

• Redemption of Debentures
• Types of Debentures
• Issue of Debentures as a Collateral Security

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