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debenture Definition

de·ben·ture (di benc̸hər)

noun

  1. a voucher or certificate acknowledging that a debt is owed by the signer
  2. a customhouse order for payment of a drawback, as to an importer
  3. an interest-bearing bond issued against the general credit of a corporation or governmental unit, with no specific pledge of assets

Etymology: ME debentur < ML < L, 3d pers. pl., pres. pass. indic., of debere: see debt: so called from receipts beginning with the Latin words debentur mihi, there are owing to me

debenture 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 Law Definition

n

A corporate debt secured by the revenues, reputation, and credit standing of the debtor, and that lacks a security interest in other property; an instrument that embodies this type of debt.
debenture Usage Examples

Converse of object

  • secure: Rather they were pursuing their own interests under an all monies debenture secured on strictly commercial terms.
  • issue: For instance, the MOF has empowered the Taiwan branches of foreign banks to issue financial debentures.
  • hold: A ten-man committee was to be appointed to examine ways of finding the money to pay off the debentures held by the Crowther brothers.

Adjective modifier

  • convertible: The current transaction results from the second funding tranche of the previously announced convertible debentures of 5 October 2005.
  • such: We therefore accept that any such debenture will also be a security for taper purposes.
  • subordinated: The action is being brought by former holders of BCI's $ 250m 6.75 % convertible unsecured subordinated debentures.
  • floating: We are working very closely with our professional advisors, as this consortium requires a floating debenture in order to complete the deal.
  • standard: This was to protect the banks who had drafted their standard form debentures in reliance on Siebe Gorman for 25 years.

Modifies a noun

  • holder: The number of debenture holders is not more than 50.
  • stock: The holders of preference shares, by the same estimate, received about £ 11.50, and the debenture stock holders about £ 60.
  • ticket: Only the best, official Wimbledon Debenture tickets supplied.
  • interest: Ordinary share capital Dividend is paid after debenture interest and fixed preference dividend.
  • seat: Official Center Court debenture seats: Lowest price GUARANTEED.
  • bond: First Mortgage Debenture Bonds due 2011 ( the Existing 2011 Debentures ) £ 200,000,000 6 3/4 per cent.

Noun used with modifier

  • mortgage: A fixed debenture or mortgage debenture is secured on a named asset similar to a mortgage that is secured on one's own house.
  • charge: The draftsman of the charge debenture drew a purposeful distinction between book debts and their proceeds.
  • company: In addition, we also calculate dividend yields, and examine the performance of the market for company debentures.
  • form: This was to protect the banks who had drafted their standard form debentures in reliance on Siebe Gorman for 25 years.

Preposition: in

  • company: However, the company should enter interests arising when it grants to a director rights to subscribe for shares or debentures in the company.

Preposition: of

  • company: The director must notify the company within five days of his becoming interested in shares or debentures of the company.

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