Q547
An official entity that represents bondholders and ensures stated rules in indenture is classified as
A.
trustee
AnswerB.
trust
C.
stated entity
D.
owner entity
Answer: Option A
Solution
Answer: Option A
Solution:
An official entity that represents bondholders and ensures stated rules in indenture is classified as trustee. A trustee is a person or firm that holds and administers property or assets for the benefit of a third party. A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions.