Question

The debentures where no charge is created on the assets company. Answer in a word / phrase / term.

Answer 1

Hey mate ✌️✌️

The debentures where no charge is created on the assets company.

ANSWER ⏬⏬⏬⏬


Secured Debentures.

Answer 2

The debentures where no charge is created on the assets of the company are known as unsecured debentures.

* These are issued without any collateral security associated with it and depends on the credibility of the person buying it.

* Hence, these do not incur any charge on the assets of the company and is alternatively termed as a naked debenture.

* It is different from the secured debentures which are associated with mortgage or creation of charge on a company's assets.