Secured bond

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Related to Secured Debentures: Unsecured Debentures

Secured bond

A bond backed by the pledge of collateral, a mortgage, or other lien, as opposed to an unsecured bond, called a debenture .

Secured Bond

A bond with collateral. That is, the issuer pledges a property or other asset to the bondholders and states that they may take ownership if the issuer defaults. For example, a municipality may secure a bond with future receipts on property taxes. Likewise, a company may secure its bonds with a factory. Secured bonds carry less risk than unsecured bonds and therefore have lower coupon rates, which reduces the issuer's borrowing costs. All secured bonds must be repaid before any unsecured bonds are repaid.

secured bond

A bond that is guaranteed with a pledge of assets. A bond might be secured with real estate.

Secured bond.

The issuer of a bond or other debt security may guarantee, or secure, the bond by pledging, or assigning, collateral to investors. If the issuer defaults, the investors may take possession of the collateral.

A mortgage-backed bond is an example of a secured issue, since the underlying mortgages can be foreclosed and the properties sold to recover some of or all the amount of the bond.

Holders of secured bonds are at the top of the pecking order if an issuer misses an interest payment or defaults on repayment of principal.

References in periodicals archive ?
8 million net proceeds from offering of Secured Debentures that were deposited under trustee as of September 30, 2015.
PIK interest will be added to the principal amount of the Secured Debentures outstanding.
9 million of its outstanding 8% Secured Debenture and an additional $780,000 of accrued interest from various holders, clears from ANEC's balance sheet approximately $13.
The statements in this press release regarding the conversion of the senior secured debentures, reconstitution of the board of directors and management, actual and anticipated market conditions, any implied or perceived benefits from the new management, and any other effects resulting from any of the above are forward-looking statements.
The Series B Preferred Stock and the new convertible secured debentures include restrictions on conversion that prohibit a holder of these securities from converting them if it would result in the holder beneficially owning more than 9.
Airtrax issued investors secured debentures, convertible into shares of common stock at a conversion price equal to $0.
OTCBB:ETLO) announced today that it has executed an agreement to restructure its January 2008 and April 2008 Convertible 6% Secured Debentures with a principal amount of $5.
BULLETIN BOARD: ENEI) today announced that all of the remaining holders of its 2004 and 2005 Convertible Secured Debentures have elected to convert their debentures into common stock.
today announced that it is working with its Senior Lenders that hold the Company's $15 million Senior Secured Debentures due August 31, 2008, in order to satisfy its future obligation and to settle a dispute of whether any default has occurred and whether a redemption has occurred, as asserted by the Senior Lenders.
625 billion term loan and the $121 million of secured debentures are secured by a first lien on NMG's fixed and intangible assets, and have average recovery prospects (31%-50%).
7 million private placement of Senior Secured Debentures (the Debentures) issued by Midwest Energy, Inc.
14 million in financing through a private placement of convertible secured debentures.