The trustees have a legal mortgage over the company‟s assets.
A covenant the company to pay debenture holders the principal and interest.
A clause specifying the events in which the security is to become enforceable e.g. default in payment of interest or principal, cessation of business etc.
Covenant the company to keep a register of debenture holders, and to insure the security as well as keep the same in repair
Provision for meetings of debenture holders
Type of nature or security given
Details of any sinking fund proposed the company to provide for stock redemption
Powers of trustees to:
Take possession of the property charged when the security becomes enforceable
Regulate dealings with the property charged
Appoint a receiver when the security becomes enforceable
Sell the security