What happens when the Principal is due at end of year ten?
The lending bank accepted the pledged corpus of the “Special” ‘CDs and impounded this collateral during the full term. The Investors and your Project contracted with the bank to pledge the CDs were “irretraceable and pledged irrevocably” to the Lender as collateral for the principal of the loan. When the CD CORPUS matures in year ten, the bank repatriates/redeems them. In other words, they dissolve because these “Special” CDs don’t have to be paid out like a bond.
