Question

Question 4:
Debentures in the nature of contingent liability
on which no interest is payable are known as​

Answer 1

Answer:

collateral security

Explanation:

such debentures are called collateral security

Answer 2

Answer:

Debentures in the nature of contingent liabilty on which no interest is payable are known as "Collateral Securities"

Explanation:

The term Collateral security means an extra layer of protection over a primary security. In this case, the money lender does not pay any interest on the debentures issued. On top of that, if the debtor fails to repay the loan on time and it is seen that the primary security is not enough the debenture mentioned is used to recover the money.