Q267
Department who is appointed by bond holders as representative or monitor of bonds is considered as
A.
trustee
AnswerB.
trust department
C.
monitoring department
D.
indenture department
Answer: Option A
Solution
Answer: Option A
Solution:
Department who is appointed by bond holders as representative or monitor of bonds is considered as trustee. A bond trustee is hired by a bond issuer and oversees the implementation of a bond or trust indenture, which is a contract between a bond issuer and a bondholder. The trustee has a fiduciary responsibility to act on behalf of the issuer, rather than in its own interests.