what is meant by secured Debtunhers
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Explanation:
Secured debt is debt backed or secured by collateral to reduce the risk associated with lending. If the borrower on a loan defaults on repayment, the bank seizes the collateral, sells it, and uses the proceeds to pay back the debt.
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Answer:
There are several types of debentures on the basis of the terms and conditions of their issue.
- Security
- Tenure
- Mode of Redemption
- Coupon Rate
- Transferability
Security Point of View -
Secured Debentures :
Debentures which are secured by a fixed or floating charge on the assets of the company. These debentures are also called Mortgage Debentures.
Unsecured Debentures :
Debentures which are not secured fully or partly by a charge on the assets of the company are called unsecured Debentures. These debentures are also called simple or naked debentures.
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