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TRSC, a trust company specializing in corporate investments, is brought in as a corporate trustee for a recent bond issue made by Banko, a small investment bank. The newly hired CFO of Banko is reviewing the roles of TRSC specified in the indenture for the bond issue. Which of the following statements is correct?
A
TRSC must monitor Banko's financial situation to foresee any covenant breaches.
B
When deemed necessary, TRSC should take action beyond the terms of the indenture in order to protect bondholders.
C
TRSC must take action according to the terms of the indenture whenever it is requested by bondholders.
D
TRSC is paid by Banko to represent the interests of the bondholders.