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__________ debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.

Solution

✅ Correct Option: 2

Debentures classified on the basis of security are secured or unsecured. Secured (mortgage) debentures carry a fixed or floating charge on the company's assets, which can be realised to repay holders if the company defaults.

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