Security & Collateral · glossary
The secured liabilities are the debts a security document protects. A debenture usually defines them widely: all money and obligations the company owes the lender, now or in the future, under the loan and the security documents, with interest, fees and costs. If the lender enforces, it can recover all of them from the charged assets.
Everything the Company owes the Bank, now or later, under the Facility Agreement or the Debenture, with interest, fees and costs. A charge secures only the debt its own document names, and this definition names it. Clause 2.1 is the promise to pay it. Definition: Secured Liabilities · Debenture §2.1 · Chapter 1
Explained in Chapter 1, What Security Is For, of Security & Collateral.
This is the covenant to pay. Clause 1.1 defines the debt as the Secured Liabilities: all money the Company owes the Bank under the loan agreement or the Debenture. The Company asked why it must promise twice. The answer is that a charge secures only what its own document says it secures.Read Chapter 1, What Security Is For →
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all money and liabilities which the Company now or later owes to the Bank under or in connection with the Facility Agreement or this Debenture, whether present or future, actual or contingent, alone or with another person, as principal or as surety, with all interest, fees, costs and expenses payable in respect of them, and all costs, expenses and remuneration of any Receiver;Read the definition in the document →
A debt backed by security, so the creditor can take and sell a charged asset if the debt is not paid. In a debenture, Secured Liabilities is a defined term that lists every debt the security covers.
Usually everything the company owes the lender under the finance documents, now or later, including interest, fees and costs. A narrow definition can leave a later loan or a hedging debt without security.
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