| Commentary

40 Basic format of the trust deed

| Commentary

40 Basic format of the trust deed

The basic format of the trust deed will include the following provisions1:

  1. 40.1

        the recital of the board resolution to issue a series of debentures2 and to secure the debentures by execution of a trust deed;

  2. 40.2

        a covenant to repay the principal, either on a fixed date, or by instalments, or by a sinking fund method3 (and, in any case, on the earlier happening of certain contingencies), with interest until payment;

  3. 40.3

        a mortgage by way of legal charge (if appropriate) to the trustees, by reference to a schedule, of the property

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