Series 82: 3.3.3.1. Mortgage Bonds

3.3.3.1. Mortgage Bonds

Mortgage bonds provide bondholders with a first lien on corporate property. Bondholders are given the right to sell the property if the corporation defaults on its payments. Trustees rarely have to seize property, however, since the company has strong incentives to find other means of paying its bondholders than selling off its hard assets.