Wild deeds
When the agreement was made before a court of law a tripartite indenture was made, with the third piece kept at the court. The term is used for any kind of deed executed by more than one party, in contrast to a deed poll which is made by one individual. In the case of bonds, the indenture shows the pledge, promises, representations and covenants of the issuing party.
Your mortgage lender will be happy to supply you with a copy of the title deeds but will charge you a fee for doing so. The first thing to recognise, as you will already have realised from reading the above, is that both the pre-registration title deeds and the post-registration title plans may contain a very poor and inaccurate description of the boundaries. Leaving these technical difficulties to one side, there may be insurmountable difficulties in gaining sight of the title deeds.
In short, the parcels clause is at best an inadequate description of the size and shape of the parcel of land, and that description lacks any quality control. It is therefore unsafe to rely on the parcels clause alone for a definition of the exact position of the boundaries. To put it another way, you shouldn’t automatically assume that a given dimension is accurate simply because some unknown person has seen fit to write it into a deed or onto a deed plan. This advice holds true regardless of the status of the deed as a legal document. have decided that the title deeds are not needed as security because title to registered land is guaranteed by the state and their interest in the land (the outstanding part of the mortgage loan) is protected because they have registered a charge against the title.
Deed
No trust relationship exists between the bondholder and the issuing corporation. These two are in a regular contractual, arm’s length, non-fiduciary, non-equity relationship. A trust indenture is similar to a bond indenture, except it also details the trustee’s responsibilities in overseeing all of a bond issue’s terms. Typically a credit indenture is used for the sake of bond issuers andbondholders. It specifies the important features of a bond, such as itsmaturity date, the timing of interest payments, method of interest calculation, callability, and convertible features-if applicable.
Traditionally, they have held the title deeds for unregistered land as security against the loan that they have made to the purchaser of the land. If the mortgage lender holds the title deeds then the landowner is unable to sell the land without the mortgage lender’s knowledge and agreement. An indenture is a legal contract between two parties, particularly for indentured labour or a term of apprenticeship but also for certain land transactions.
If you own unregistered land and have no mortgage then you may either hold the title deeds or you may have deposited them at a bank or with a solicitor for safe keeping. If you are the owner of unregistered land with a mortgage then you will probably never have seen yourtitle deeds as they will be held by your mortgage lender as security against the mortgage loan. Your mortgage lender will be happy to supply you with a copy of the title deeds but will charge you a fee.
Certain types of documents are not legally binding unless they are made in the form of deeds. If you own registered land and have a mortgage then your mortgage lender may have decided that the pre-registration title deeds are not needed as security because they have registered the mortgage as a charge against the title. In this case the mortgage lender may have returned the title deeds to you or may simply have destroyed them. If you own registered land and have a mortgage then your mortgage lender may still be holding the pre-registration title deeds and will be happy to supply you with a copy of them but will charge you a fee for doing so. If you own unregistered land and have a mortgage then your mortgage lender will be holding the title deeds as security against the mortgage loan.
Is an indenture the same as a deed?
The term is used for any kind of deed executed by more than one party, in contrast to a deed poll which is made by one individual. In the case of bonds, the indenture shows the pledge, promises, representations and covenants of the issuing party.
Bonds are issued to lenders or investors to raise money for a corporation or governmental body. To issue a bond, the issuer hires a third-party trustee, usually a bank or trust company, to represent investors who buy the bond. The agreement entered into by the issuer, and the trustee is referred to as the trust indenture. A trust indenture describes the bond’s characteristics and the terms of its callability. It also delineates the amount of additional debt the issuer can assume, and the circumstances and procedures in case of issuer default.
Bond indenture
A bond indenture also contains all the terms and conditions applicable to the bond issue. Other critical information included in the indenture are the financial covenants that govern the issuer and the formulas for calculating whether the issuer is within the covenants (usually ratios based on corporate financials).
- Title deeds are documents showing ownership, as well as rights, obligations, or mortgages on the property.
Deeds of conveyance
If you own registered land and have no mortgage then you may either hold the pre-registration title deeds or you may find that they were destroyed by someone else long before you bought the property. Bond indenture (also trust indenture or deed of trust) is a legal document issued to lenders and describes key terms such as the interest rate, maturity date, convertibility, pledge, promises, representations, covenants, and other terms of the bond offering. When the offering memorandum is prepared in advance of marketing a bond, the indenture will typically be summarised in the “description of notes” section. Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges.
Title deeds are documents showing ownership, as well as rights, obligations, or mortgages on the property. Since around 2000, compulsory registration has been required for all properties mortgaged or transferred. The details of rights, obligations, and covenants referred to in deeds will be transferred to the register, a contract describing the property ownership. Consequently, many sets of title deeds have been destroyed, although some have been returned to landowners. A mortgage lender who has made loans against 1,000,000 properties, and who keeps the title deeds for each property in a separate lever arch file, requires nearly 80 km (50 miles) of shelving on which to store all of those title deeds.
A Deed of Variation is used to vary the terms of an earlier deed relating to the same matter. One example of its use is to correct an inaccurate description of the boundary in the parcels clause of an earlier Conveyance that relates to the same parcel of land.
At common law, ownership was proven via an unbroken chain of title deeds. This system removes risks associated with unregistered deeds and fraudulent or otherwise incorrect transactions. Some Australian properties are still conveyed using a chain of title deeds – usually properties that have been owned by the same family since the nineteenth century – and these are often referred to as ‘Old System’ deeds. In the United States, public debt offerings in excess of $10 million require the use of an indenture of trust under the Trust Indenture Act of 1939. The rationale for this is that it is necessary to establish a collective action mechanism under which creditors can collect in a fair, orderly manner if default takes place (like that which occurs during bankruptcy).
Deed of trust
A callable bond is essentially a bond with an embedded call option attached to it. Similar to its options contract cousin, this bond option gives the issuer the right—but not the obligation—to exercise the claim. The indenture will define if calls can redeem only a portion of the bonds associated with an issue or the entire issue. When redeeming only a portion of the issue, bondholders are chosen through a random selection process.
Corporate issues for less than $5 million, municipal bonds, and bonds issued by the government are not required to file trust indentures with the SEC. Of course, these exempted entities may choose to create a trust indenture to reassure prospective bond buyers, if not to adhere to any federal law.
A trust indenture is a legal and binding contract that is created to protect the interests of bondholders. The trustee’s name and contact information is included in the document, which highlights the terms and conditions that the issuer, lender, and trustee must adhere to during the life of the bond. The section on the trustee’s role is important, as it gives a clear indication of how unforeseen incidents will be dealt with. For example, if a conflict of interest comes up involving the trustee’s role as a fiduciary, in certain trust indentures, the issue must be resolved within 90 days.
A trust indenture is an agreement in a bond contract made between a bond issuer and a trustee that represents the bondholder’s interests by highlighting the rules and responsibilities that each party must adhere to. It may also indicate where the income stream for the bond is derived from.
Another example is the deliberate re-routing of a private right of way across theservient tenement. A Conveyance (or Deed of Conveyance) is the document by which the sale of a parcel of unregistered land is effected. An indenture agreement is the formal contract between a bond issuer and the bondholders. It sets forth the details of all the terms and conditions of the bonds, such as the exact day of their maturity, the timing of the interest payments and how they are calculated, and the details of any special features.
Historically, indenture has also referred to a contract binding one person to work for another for a set period of time (indentured servant), particularly European immigrants. In modern day finance, the word indenture most commonly appears in bond agreements, real estate deals, and some aspects ofbankruptcies. A copy of it must be filed with the Securities and Exchange Commission (SEC) for corporate bonds with aggregate principal issues of at least $5 million.
So there is a big incentive for the mortgage lenders not to store title deeds that they don’t need to store. Then there is the attitude of the mortgage lenders towards document storage.