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In the context of issuing debentures as collateral security for a bank loan, a company may request a loan from the bank, which provides the funds under the agreement that the company's fixed assets serve as primary security. This means if the company defaults on the loan, the bank can seize its fixed assets. Additionally, the bank may require collateral security in the form of debentures. This arrangement ensures that if the company lacks fixed assets at the time of default, the bank can claim the debentures as a backup security measure. Essentially, debentures act as an added layer of financial assurance for the bank in case the company fails to repay the loan.