Outline the contents of a trust deed.

      

Outline the contents of a trust deed.

  

Answers


Kavungya
i. A covenant (promise) by the company to pay to the debenture holders the agreed instalments of the loan and accrued interest.
ii. A description of the property charged, whether specifically or by way of a floating charge.
iii. The events in which the security is to become enforceable, such as failure to pay the principal sum or interest as agreed.
iv. A clause empowering the trustees to take possession of the property charged in the event of the security becoming enforceable, and to carry on the business and to sell the property charged.
v. Appointment of a receiver
vi. Meetings of debenture holders.
vii. Covenants by the company to insure the property charged and to keep the property charged in good repair.
Kavungya answered the question on April 15, 2021 at 19:56


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