Performance as _____________ is normally the only true trust relationship administered by a corporate trust department.

Question

Quizplus · Accepted Answer

A trustee under a bond indenture is responsible for ensuring that the bond issuer (usually a corporation) complies with the terms of the bond agreement, including making interest payments and repaying principal. The trustee is appointed to act in the best interests of the bondholders, not the issuer. As such, the trustee's performance is the only true trust relationship administered by a corporate trust department, as it involves a fiduciary responsibility to act in the best interests of the bondholders. The other choices (B and C) involve banks and trusts under bond indentures, respectively, but do not necessarily involve a true trust relationship.

Performance as _____________ Is Normally the Only True Trust Relationship