Catalogue description Draft for issue of mortgage debentures

Nos. 1-2 (worth £100 each plus £7/10/-% p.a. interest payable half-yearly) pursuant to a directors' resolution (of 10th. Oct., 1929), to Sidney Rawle (of 395, Old Church Rd., Coventry, despatch clerk), the conditions being:- firstly, that debentures be payable pari passu as a first charge on company assets; secondly, that as the charge is a floating security (a) except as provided for below, the company may not state a mortgage upon a debenture, (b) the company may mortgage bonds for securing purchase-money, (c) otherwise the company may deal with its property at its discretion; thirdly, that the company will keep a register of debentures; fourthly, that transfer of this debenture must be under its holder's signature; fifthly, that at the death of a sole or joint debenture-holder, his personal representatives or the other holder only have title to his interest; sixthly, that such (a) titulee(s) may be registered as holding the debenture on production of evidence; seventhly, that the company may demand a 2/6 fee for registration of debenture-transfer; eighthly, that the company shall treat the holder of a debenture as its sole owner; ninthly, that moneys hereby secured will be paid notwithstanding any equities made between the company and the original or an intermediate holder; tenthly, that interest will be paid by posted cheque; eleventhly, that moneys will be payable if (a) the company shall give the holder sixth months' notice of paying-off, (b) the holder gives the company similar notice, (c) there is distraint, (d) the company is wound up, or (e) there is default in insurance; twelfthly, that if he holds a majority of the shares, the debenture-holder may appoint a receiver for the company; thirteenthly, that such a receiver will be empowered to (a) take possession, (b) carry on the business, (c) sell charged property or (d) make a compromise; fourteenthly, that profits of the business and proceeds of its sale would be applied by the receiver (subject to claims) in (a) payment of costs, (b) payment to debenture-holders of their principals;(c) similar payment of their interests and (d) assigning any surplus to the company; fifteenthly, that notices will be deemed to have been served within 24 hours of posting; and sixteenthly, that the above provisions may be varied with the consent of the holders of three-quarters of the debentures.