BANKING AFFAIRS

Detailed explanation-1: -Trustee: A bank designated by the issuer as the custodian of funds and official representative of bondholders. Trustees are appointed to insure compliance with the contract and represent bondholders to enforce their contract with the issuers.

Detailed explanation-2: -Bond trustee is a financial institution having trust powers and responsible for transfer, registration or payments of bonds. Examples are commercial banks or trust company given powers by a bond issuer to enforce the terms of bonds indenture. An indenture is a contract between a bond issuer and a bond holder.

Detailed explanation-3: -A bondholder is an investor who acquires bonds issued by an entity such as a corporation or government body. Bondholders essentially become creditors to the issuer, and so bondholders enjoy certain protections and priority over stock (equity) holders.

Detailed explanation-4: -Role of a Note Trustee Attend meetings; Review reports and statements; Monitor compliance obligations; and. Negotiate and execute transaction documents.

Detailed explanation-5: -A collateral trust bond, also known as collateral trust certificate or collateral trust note, is a bond that is secured by one or more financial assets-such as shares of stock or other bonds-that is deposited and held by a trustee for the holders of the bond.