When a bond issue is secured by a legal claim on equipment it is known as a(n)
A) Junior bond.
B) Income bond.
C) Bearer bond.
D) Trust certificate.
E) Perpetuity.

Question

Quizplus · Accepted Answer

When a bond issue is secured by a legal claim on equipment, it is known as a trust certificate. Trust certificates are often used in equipment leasing transactions or other secured lending transactions where the collateral is equipment or other property.

When a Bond Issue Is Secured by a Legal Claim