An interest-bearing bond issued by a power company is an example of a debenture.
Other Word Forms
Origin of debenture
- Middle 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 ghabh- in Indo-European roots
From American Heritage Dictionary of the English Language, 5th Edition
- Originally debentur, from Latin debentur (“there are owing”), supposedly the first word of such a document in early times.