| Commentary

39 The advantages of trust deeds

| Commentary

E: TRUST DEEDS

39 The advantages of trust deeds

The use of a trust deed can be very advantageous in dealing with debentures1. Unless debentures are being issued to secure only a small or short-term loan, or a loan to one person or a very small number of persons, then trying to deal with debentures without a trust deed can be cumbersome and awkward. The advantages can be summarised as follows:

  1. 39.1

        A trust deed facilitates the appointment of trustees of proved standing, for example, a trust corporation. The trustees’ duties are to watch over the rights and interests of debenture

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