A trust indenture is a contract between a bond issuer and a bondholder that governs the terms of the bond issue. The indenture sets forth the rights and obligations of the issuer and the bondholders, and the procedures for enforcing those rights and obligations.
Is a trust deed legally binding?
A trust deed is a legal document that establishes a trust. The document sets forth the terms of the trust, including the duties and responsibilities of the trustee, the beneficiaries, and the settlor. The trust deed is binding on all parties to the trust.
Which of the following would exclude a bond from being covered under the Trust Indenture Act of 1939? A. The bond is secured by a pool of assets
B. The bond is issued by a foreign government
C. The bond is issued by a private company
D. The bond is unsecured
The Trust Indenture Act of 1939 only applies to bonds that are issued by a US corporation, so bonds that are issued by a foreign government or a private company would not be covered under the act. Additionally, the act only applies to unsecured bonds, so a bond that is secured by a pool of assets would not be covered. Which of the following bond offerings would be required to have a trust indenture under the Trust Indenture Act of 1939? The Trust Indenture Act of 1939 requires that bond offerings have a trust indenture if they are unsecured, have more than $5 million in aggregate principal amount, and are not registered with the SEC.
Who is responsible for holding the legal contract for a bond or bond indenture?
The legal contract for a bond or bond indenture is typically held by the bond issuer. The issuer is generally responsible for ensuring that the terms of the contract are met and that the bond is repaid in full at maturity. In some cases, the contract may be held by a third party, such as a trustee.
What is another word for indentured? The word "indentured" refers to a person who has agreed to work for a set period of time in exchange for payment or other benefits. There are a few different terms that can be used to describe this type of arrangement, including "contract labor" or "debt bondage."