Debenture

Debenture is a term used in financial market for a deed in which signer acknowledges a debt on a specified security. It derived its name from the Latin 'debentur', the first word used is such a deed which literally meant 'are owing'. The Latin phrase 'debentur mihi' used in the deed meant 'are owing to me'. The term came to be used in middle English as the first word of a certificate recording a debt. It also denoted a voucher issued by a royal household giving the right to claim payment for goods or services.

Debenture (from mid 19th century) denotes an unsecured loan certificate issued by a borrowing company to the entities it borrows from. Such certificates are backed by general credit rather than by specified assets.

Debenture is also a bond, a long-term security, issued by a company bearing a fixed rate of interest, usually payable half yearly on specific dates and principal amount repayable on a particular date on redemption of the debenture. Such long-term securities yielding fixed rate of interest are secured against assets.

Nearby pages
Debenture Trustee, Deborah, Debra Vidhan Sabha Constituency, Debreczen, Debt stabilisation