Which TWO of the following are advantages of using a debenture trust deed? (1) The deed creates a charge or charges over the company's assets which creates security (2)
A、single trustee of the debentureholders is appointed so the company only has to deal with one person (3) Debentures covered by a debenture trust deed have a higher priority of repayment on liquidation than debentures not covered by a deed (4) The process of selling a debenture covered by a debenture trust deed is substantially faster than the process of selling a debenture not covered by a debenture trust deed.
A、1 and 2
B、1 and 4
C、2 and 3
D、3 and 4
A、single trustee of the debentureholders is appointed so the company only has to deal with one person (3) Debentures covered by a debenture trust deed have a higher priority of repayment on liquidation than debentures not covered by a deed (4) The process of selling a debenture covered by a debenture trust deed is substantially faster than the process of selling a debenture not covered by a debenture trust deed.
A、1 and 2
B、1 and 4
C、2 and 3
D、3 and 4
【参考答案及解析】
A debenture trust deed creates security for the debentures via charges. A single person (a trustee) is appointed. This means the company only has to deal with one person rather than a number of individual debentureholders. Debentures covered by a debenture trust deed do not have a higher priority of repayment and are not necessarily faster to sell.
A debenture trust deed creates security for the debentures via charges. A single person (a trustee) is appointed. This means the company only has to deal with one person rather than a number of individual debentureholders. Debentures covered by a debenture trust deed do not have a higher priority of repayment and are not necessarily faster to sell.