1. Which of the following is an incorrect statement?
2. Which of the following is not a loan capital?
3. Which one of the following is not a type of debentures?
4. Select the correct statement regarding debenture holders.
5. Which of the following attaches on ‘crystallization’?
6. Which of the following events do not cause crystallization?
7. Select the disadvantage of debentures from the following.
8. Select the TWO statements describing about the loan capital.
A. Capital does not need to be maintained.
B. Interest depends on the availability of profits.
C. Has priority with respect to repayment.
D. Has voting rights.
9. In relation to debentures issued as a series, which of the following describes the term pari passu?
10. Which of the following are TWO of the advantages of a debenture trust deed for debenture stock?
A. The debenture holders will be able to enjoy the benefit of a legal mortgage over the company's land.
B. The debenture holders will not be able to enjoy the benefit of a legal mortgage over the company's land.
C. The company can contact a representative of the debenture holders with whom it can negotiate.
D. The trustee with their powers cannot intervene promptly in case of default.
12. Every charge entered into by a company has to be registered. Within how many days must the registration take place?
13. Select the INOCRRECT statement with regards to register of debenture holders.
14. Select the ONE that is NOT a similarity of positions of both debenture holders and shareholders.
15. In the context of debentures, which of the following MUST be created using a debenture trust deed?
16. In relation to the priority of charges, select the statement that is INCORRECT.
17. Failure to register the charges can result in which of the following?
18. Single debenture of $21,000 from Fin Bank that is secured by a charge over Wing Co's trade receivables. Wing Co may deal with the trade receivables as it wishes. The charge documentation describes the charge as a fixed charge. What type of a charge will be created over Janice Co’s trade receivables?
19. Select the TWO advantages of debentures for a company.
A. Interest payments are not mandatory.
B. A guaranteed income can be received.
C. Interest is Tax- deductible.
D. Payment of attractively high interest.
20. If the charge is related to a land, it must be registered with,
21. A floating charge,
i. Do not attach to assets until crystallization.
ii. Is unrestricted to payables or inventory.
22. Select the correct statement/s.
i. Certain types of charges need to be registered within 21 days of creation.
ii. Company law requires a company to maintain a register of charges, but not a register of debenture holders.
23. Which of the following is the purpose of a 'negative pledge' clause on a company charge?
24. A secured debenture holder may enforce the security if the company defaults on payment of interest or repayment of capital. Which of the following they may not perform?
25. In relation to a debenture, which of the following is NOT true?