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debenture

Syllabification: de·ben·ture
Pronunciation: /dəˈben(t)SHər
 
/

Definition of debenture in English:

noun

(also debenture bond)
1North American An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.
Example sentences
  • Debt takes many forms - from bonds, debentures, bank loans and notes payable, to other more complicated forms of debt units.
  • Today these phantom bonds total about $3.2 trillion, or 42 percent of the government's total outstanding debentures.
  • Traders in the bond division may have sub-specializations, such as government or corporate money market instruments or bonds, or even such instruments as debentures.
1.1British A long-term security yielding a fixed rate of interest, issued by a company and secured against assets.
Example sentences
  • In return, Gary wanted security by way of a debenture over the company's assets and Eddie and I agreed.
  • One commentator suggests that ordinary receivers appointed under a debenture or other security who are not licensed insolvency practitioners would not be covered by this exemption.
  • DFL granted a debenture to Midland as security for a loan.

Origin

late Middle English (denoting a voucher issued by a royal household, giving the right to claim payment for goods or services): from Latin debentur 'are owing' (from debere 'owe'), used as the first word of a certificate recording a debt. The current sense dates from the mid 19th century.

Definition of debenture in:

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