Debenture definition

dĭ-bĕnchər
Frequency:
A customhouse certificate providing for the payment of a drawback.
noun
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A certificate or voucher acknowledging a debt.
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An unsecured bond issued by a civil or governmental corporation or agency and backed only by the credit standing of the issuer.
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A customhouse order for payment of a drawback, as to an importer.
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The definition of a debenture is a long-term bond issued by a company, or an unsecured loan that a company issues without a pledge of assets.

An interest-bearing bond issued by a power company is an example of a debenture.

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A voucher or certificate acknowledging that a debt is owed by the signer.
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An interest-bearing bond issued against the general credit of a corporation or governmental unit, with no specific pledge of assets.
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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.
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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.
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A certificate that certifies an amount of money owed to someone; a certificate of indebtedness.
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(finance) A type of bond secured only by the general credit or promise to pay of the issuer, now commonly issued by large, well established corporations with adequate credit ratings.
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Other Word Forms

Noun

Singular:
debenture
Plural:
debentures

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.

    From Wiktionary