This issue is endowed with practically the same features as a " collateral trust bond," to which subject the reader is referred. The main difference, however, is that the former is secured by collaterals, which may be exchanged from time to time for other collaterals, with the consent, for instance, of the trustee. The convertible feature is not a bad one as it sometimes enables the issuing company to take advantage of an increase in the market value of possibly all or part of the collateral securities, and paying off part, or possibly all, of the issue, the proviso almost always being inserted that the issuing company may redeem the issue in part or entire under such conditions. Should none of the issue be paid off, or a proportionate amount not paid off to offset the collaterals withdrawn, the trustee would demand other satisfactory collaterals to fill the deficiency. There are other similar good features of minor note attached to the convertible bond, and, upon the whole, as between the two issues, the convertible one is the more preferable, other conditions being equal.