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Equal Coverage
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
J Woelfel
(We recommend this as work of authority and you can order
it here)
A
protective clause in a corporate indenture providing that in the case
of subsequent issues of bonds, the subject bonds shall be entitled to
the same security as that of the subsequent issues.
Such a clause, in the case of debentures (unsecured obligations),
will result in such debentures acquiring a secured status as the result
of subsequent issuance of mortgage bonds.
See
DEBENTURE BONDS
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