debenture

debenture
/dabentyar/ Long term unsecured debt instrument, issued pursuant to an indenture. A promissory note or bond backed by the general credit and earning history of a corporation and usually not secured by a mortgage or lien on any specific property; e.g., an unsecured bond. Holders of corporate debentures are creditors of the corporation and entitled to payment before shareholders upon dissolution.
See also bond
Compare secured bond.
Certificate issued by customs to an importer for the deduction or refund of duties on merchandise imported and then exported by such importer.
@ convertible debenture
Debenture which may be changed or converted into some other security (e.g. stock) usually at the option of the holder.
@ convertible subordinated debenture
Debenture which is subject or subordinate to prior payment of other indebtedness but which may be converted into another form of security.
@ sinking fund debenture
Debenture which is secured by periodic payments into sinking fund, commonly managed by trustee for purpose of retiring such debt.
+ sinking fund debenture
A type of debenture which is backed by a provision for sinking fund (q.v.)
@ subordinate debenture
Debenture which is subject to or subordinate to prior payment of other indebtedness
@
- debenture bond
@ debenture indenture
An indenture containing obligations not secured by a mortgage or other collateral; a key instrument in the process of long term debt financing for general business corporations. Its effect is to put the debenture-holder in substantially the same practical position as a bondholder secured by a first mortgage.
See also indenture
@ debenture stock
In England, a stock or fund representing money borrowed by a company or public body and charged on the whole or part of its property. An issue of stock usually irredeemable and transferable in any amount, not including a fraction of a pound. The terminability and fixity in amount of debentures being inconvenient to lenders led to their being in many cases superseded by debenture stock
@

Black's law dictionary. . 1990.

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  • debenture — de·ben·ture /di ben chər/ n [Anglo French debentour and Medieval Latin debentura, perhaps from Latin debentur they are owed]: an unsecured bond that is backed by the issuer s general credit rather than a specific lien – called also debenture… …   Law dictionary

  • Debenture — De*ben ture (?; 135), n. [L. debentur they are due, fr. debere to owe; cf. F. debentur. So called because these receipts began with the words Debentur mihi.] 1. A writing acknowledging a debt; a writing or certificate signed by a public officer,… …   The Collaborative International Dictionary of English

  • Debenture — Débenture Une débenture est un instrument financier qui a les mêmes caractéristiques qu une obligation, toutefois la débenture n offre aucun bien en garantie. Par conséquent, elle offre moins de couverture pour l acheteur du titre en cas de… …   Wikipédia en Français

  • debênture — s. f. [Brasil] [Economia] Obrigação ao portador. = DEBENTURA   ‣ Etimologia: inglês debenture …   Dicionário da Língua Portuguesa

  • debenture — Security instrument evidencing a debt due from one party to another, payable on demand or otherwise, which can be a fixed and/or floating charge on assets and which can grant the lender broad powers to recover the amount due upon default,… …   Glossary of Bankruptcy

  • debenture — (n.) written acknowledgment of a debt, early 15c., from L. debentur there are due (said to have been the first word in formal certificates of indebtedness), passive present third person plural of debere to owe (see DEBT (Cf. debt)) …   Etymology dictionary

  • debenture — [n] certificate of debt bond, I.O.U., promise to pay, voucher; concepts 318,684 …   New thesaurus

  • debenture — ► NOUN Brit. ▪ a bond of a company acknowledging a debt and yielding a fixed rate of interest. ORIGIN Latin debentur are owing (used as the first word of a certificate recording a debt), from debere owe …   English terms dictionary

  • debenture — [di ben′chər] n. [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] 1. a voucher or certificate acknowledging that a… …   English World dictionary

  • debenture — a fixed interest investment in a company, which has priority for interest payments, generally redeemable after the lapse of a specified time Any debt obligation backed strictly by the borrower s integrity, e.g. an un secured bond. A debenture is… …   Financial and business terms

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