CUET Preparation Today
| When debentures are issued with a charge on the assets of the company for the purpose of payment in case of default, then these debentures are known as: |
Secured Debentures Redeemable Debentures Unsecured Debentures Specific Coupon Rate Debentures |
| Secured Debentures |
| Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. The charge may be fixed or floating. A fixed charge is created on a specific asset whereas a floating charge is on the general assets of the company. The fixed charge is created against those assets which are held by a company for use in operations not meant for sale whereas floating charge involves all assets excluding those assigned to the secured creditors. |
