A loan to a company under the company’s seal is
-
A.
Fixed deposit -
B.
Mortgage -
C.
Bond -
D.
Debenture
Correct Answer: Option B
Explanation
Some common uses of company seals include:
– Company resolutions
– Important Contracts and Deeds
– Property transfer (landed in most cases) and execution of land contracts.
– Execution of loan documents, mortgages, and guarantees.
– Occasions where a document will be utilized outside the country.
In this case a loan to a company under the company seal is a mortgage