Iacobucci and Triantis clarify that any type of corporation with legal personhood qualifies to issue debt as long as it can own property, enter contracts and be sued.
Corporates can be issued in bearer form, where the holder of the actual certificate is required to update information periodically with the trustee or issuer, or as "registry" bonds, with the owner named but which carry no material coupons. "Book entry" bonds reside in a central securities depository and are registered with the broker, who then assigns interest to the owner's brokerage account. Corporate bonds can be unsecured "debentures," or backed by specific assets identified in the indenture. First-mortgage bonds are backed by lien against real estate owned by the debt-incurring firm; collateral trust issues are backed by other financial assets owned by the corporation, and "Equipment Trust Certificates" are tied to large real assets other than real estate. All these types of security provide collateral against bankruptcy which is paid before equity issues are reimbursed unless otherwise specified, in which case the bond is called "subordinated." If a third party or parties back the debt, the result is a "guaranteed" bond, where the bond guarantors stand liable for principal repayment in the event of bankruptcy.
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