Question

When debentures are taken by mortgaging property of the company, it is known as​

Answer 1

Answer:

secured or mortage debenture

Answer 2

It is known as secured debentures.

• The secured debentures are additionally called as mortgage debentures. They are secured by some charge on the resources or property of the organization.
• The charge might be either a fixed charge or a floating charge.
• On account of fixed charges, explicit resources are sold as a security for the debentures under drifting charges, the debenture holders have a claim on all resources of the organization.