03-11-2017, 11:52 AM
I want the pdf for my project the topic is specimen presentation of debenture certificate for different kinds of debentures
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project on specimen presentation of debenture
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I want the pdf for my project the topic is specimen presentation of debenture certificate for different kinds of debentures
06-11-2017, 04:28 PM
In corporate finance an obligation is a medium and long-term debt instrument used by large companies to borrow money at a fixed interest rate. The legal term "obligation" originally referred to a document that creates a debt or recognizes it but in some countries the term is now used interchangeably with bonds loan shares or promissory notes. An obligation like a loan certificate or a loan bond that evidences the fact that the company is responsible for paying a specific amount with interest and although the money raised by the bonds becomes part of the structure capital of the company. Higher subordinated obligations are paid before subordinated obligations and there are variable risk and return rates for these categories.
The obligations are generally transferable freely by the holder of the obligation. Holders of debentures do not have the right to vote at general meetings of shareholders of the company, but may hold separate meetings or votes, p. on changes to rights linked to obligations. The interest paid to them is a charge against profit in the company's financial statements.
The term "obligation" is more descriptive than definitive. An exact and exhaustive definition for an obligation has been difficult to achieve. The British commercial judge Lord Lindley remarked remarkably in one case: "Now what is the correct meaning of 'obligation'? I do not know I do not find a precise definition anywhere we know that there are several types of instruments commonly called debentures. "In Asia if the reimbursement is guaranteed by a charge on land the loan document is called a mortgage; When the reimbursement is guaranteed by a charge against other assets of the company, the document is called obligation; and when there is no security involved, the document is called a note or 'unsecured deposit note'.
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