When a bond issue is secured by a legal claim on equipment it is known as a

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A bond issue that is secured by a legal claim on equipment is known as a trust certificate. Trust certificates are a type of bond that are backed by specific assets, such as equipment or real estate. This provides an added level of security for investors, as the assets can be used to repay the bondholders if the issuer defaults on the bond. Junior, income, bearer bonds, and perpetuities do not have this specific type of asset backing.

When a Bond Issue Is Secured by a Legal Claim