Multiple choice

What do you mean by “Trust Deed” in context of debenture?

  1. A legal document signed while debentures are bought.

  2. A legal document to appoint trustees to protect the interest of debenture holders before they are offered for public subscription.

  3. A legal document when debentures are transferred.

  4. A legal document made when debentures are sold.

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debenture Trust dead. It is a formal legal document/contract that outlines the terms of the debenture issue between issuer and holders. States concerns to maturity date, interest rate, interest payment , protective provisions and any other terms and conditions between issuer and holders.

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