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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 bond; see also indenture compare mortgage bond at bond◇ Debentures are often convertible to stocks.
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
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Companies can issue a series of debentures or debenture stock which essentially means secured loan stock. The instrument creates indebtedness owing by the company to the holder, usually carrying interest and maturing on a particular date when the principal amount is repaid. Debentures tend to be secured by a floating charge and/or a collection of fixed charges over the company's assets.
Easyform Glossary of Law Terms. — UK law terms.
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n.An unsecured loan instrument issued by a company and backed by a promise to pay or general credit rather than a specific property; an unsecured bond, often issued by a large company with good credit ratings; holders of debentures are creditors of a corporation and if the corporation dissolves, they receive payment before stockholders. See also indenture
The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.
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a document, almost invariably by or on behalf of a company, that creates or acknowledges a debt owed by the company. The term includes debenture stock, bonds and other debt securities issued by a company. Companies usually keep a register of debenture holders. It is a word without precise definite signification. Normally, debentures are issued in connection with secured borrowings and incorporate a fixed or floating charge; but this is not strictly necessary, and debentures can be used in connection with unsecured borrowings.
Collins dictionary of law. W. J. Stewart. 2001.
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A type of bond (an interest-bearing document that serves as evidence of an investment or debt) that does not require security in the form of a mortgage or lien on a specific piece of property. Repayment of a debenture is guaranteed only by the general credit of the issuer. For example, a corporation may issue a secured bond that gives the bondholder a lien on the corporations factory. But if it issues a debenture, the loan is not secured by any property at all. When a corporation issues debentures, the holders are considered creditors of the corporation and are entitled to payment before shareholders if the business folds.Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & FinancesCategory: Business Cash Flow Problems & BankruptcyCategory: Business, LLCs & Corporations → Business Tax & DeductionsCategory: Personal Finance & Retirement → Taxes → Tax Audits
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
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An instrument executed by a company as a deed in favour of a creditor, providing the creditor with security over the whole or substantially the whole of a company's assets and undertaking, typically creating a fixed charge over fixed assets and a floating charge over the rest of the company's undertaking and reserving to the creditor the power to appoint an administrator or a receiver and manager with extensive authority to get in the assets, run the company's business and dispose of the assets either piecemeal or as part and parcel of a sale of the business as a going concern.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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n. 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.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
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(Latin: Are due.)A promissory note or bond offered by a corporation to a creditor in exchange for a loan, the repayment of which is backed only by the general creditworthiness of the corporation and not by a mortgage or a lien on any specific property.
Dictionary from West's Encyclopedia of American Law. 2005.
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[Latin, Are due.] A promissory note or bond offered by a corporation to a creditor in exchange for a loan, the repayment of which is backed only by the general creditworthiness of the corporation and not by a mortgage or a lien on any specific property.
Short Dictionary of (mostly American) Legal Terms and Abbreviations.
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n.a form of bond certificate issued by a corporation to show funds invested, repayment of which is guaranteed by the overall capital value of the company under certain specific terms. Thus, it is more secure than shares of stock or general bonds.
Law dictionary. EdwART. 2013.
