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hes shifty ventures debentures issued as collateral debentures issued as collateral security so what is collateral security cola troll is additional security let us just take an example suppose XYZ company wants to raise a loan it wants to raise a loan for maybe 50 lakhs against this loan it has to give some security and let us see it pledges its machinery against the security of machinery it has taken a loan of 50 lakhs from a bank in addition to this security the company may also issue debentures they issue debentures maybe for 50 lakhs maybe for 60 lakhs and these are given to the bank so alone has been taken for 50 lakhs this loan is against an asset may be machinery in our example in addition to that the company has also issued the Ventures of 60 lakhs and handed it over to the bank however these debentures are only collateral security they are only additional security the bank will keep these dimensions in the novel these debentures can be used only if the company defaults on t
