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The Trusted Nature Act of 1939 is a U.S. federal law designed to protect bondholders' rights and interests. It requires issuers of bonds to provide key information to potential buyers, ensures regular updates on the issuer's financial status, and appoints a neutral trustee to enforce the bond agreement rules. Additionally, it grants bondholders the right to vote on significant decisions affecting their rights. Overall, the law aims to safeguard bond investors from exploitation and ensure they receive what is promised to them. Further simplifications will be provided in the next video.