California · Financial Code

FIN §18018.4: “Mandatory convertible debt,” as used in this division, means a subordinated debt instrument which requires the issuer to convert that instrument into common or perpetual preferred stock by a date at

What this law says, in plain English

A mandatory convertible debt is a subordinated debt instrument that the issuer must convert into common or perpetual preferred stock by a specified date.

Read the full statutory text

“Mandatory convertible debt,” as used in this division, means a subordinated debt instrument which requires the issuer to convert that instrument into common or perpetual preferred stock by a date at or before the maturity of the debt instrument. The maturity of those instruments shall be 12 years or less.

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