— Kishore V, SME and ACW at Edumarz
- Mortgaged Debentures are debt instruments that are secured against a company’s assets.
- First fixed charge mortgage debentures and second floating charge mortgage debentures are the two types of mortgage debentures.
- Fixed charge debentures are those that are secured against a specific asset, whereas floating charge debentures are those that are secured against all of a company’s assets.
- Mortgage debentures can only be sold by the holder if the firm defaults on its loan or interest.