The UrbanStar Debenture Program is a Debt Instrument, which allows investors to participate in capital investment opportunities by UrbanStar Capital.
Our Debenture is a long-term Debt Instrument issued by UrbanStar for the purpose of raising funds for corporate use. Our Debenture has some similarities with Bonds but the terms and conditions of securitization of Debentures are different from that of a Bond. A Debenture is regarded as an unsecured investment because there are no pledges (guarantee) or liens available on particular assets of the company. In some cases our debentures will be fully convertible into other products offered by the UrbanStar Land Group. This opportunity for convertible debentures will vary from offering to offering.
Normally, Debentures are referred to as freely negotiable Debt Instruments. The Debenture holder with UrbanStar functions as a lender to the issuer of the Debenture. In return, a specific rate of interest is paid to the Debenture holder by UrbanStar Capital similar to the case of a loan.
The advantage to offering a bond for UrbanStar is that as the Debenture issuer, company assets are kept without any encumbrances so that the option is open for issuing them in future for financing purposes.
