An interest-bearing bond issued by a power company is an example of a debenture.
- a voucher or certificate acknowledging that a debt is owed by the signer
- a customhouse order for payment of a drawback, as to an importer
- an interest-bearing bond issued against the general credit of a corporation or governmental unit, with no specific pledge of assets
Origin of debentureMiddle English debentur ; from Medieval Latin ; from L, 3d person; personal (grammar) plural , present tense passive voice indicative , of debere: see debt: so called from receipts beginning with the Latin words debentur mihi, there are owing to me
- A certificate or voucher acknowledging a debt.
- An unsecured bond issued by a civil or governmental corporation or agency and backed only by the credit standing of the issuer.
- A customhouse certificate providing for the payment of a drawback.
Origin of debentureMiddle English debentur, from Latin dēbentur, they are due (probably the first word appearing on certificates of indebtedness), third person pl. passive of dēbēre, to owe; see ghabh- in Indo-European roots.
Originally debentur, from Latin debentur (“there are owing”), supposedly the first word of such a document in early times.
debenture - Investment & Finance Definition
In general, an unsecured debt, often an unsecured bond backed only by the integrity or creditworthiness of the issuer (and not by any form of collateral, such as property or inventory or some other asset). Debentures are governed by agreements known as indentures, which are subject to the Trust Indenture Act of 1939.
debenture - Legal Definition