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. . 1996.

I noun bond, negotiable instrument, paper money, pledge, title deed II index bond, charge (lien), check (instrument), draft, note (written promise to pay), security (pledge), specialty (contract)

Burton's Legal Thesaurus. . 2006

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.

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. . 2008.

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. . 2001.

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.
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Nolo’s Plain-English Law Dictionary. . 2009.

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.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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. . 2000.

(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.

[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.

   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. . 2013.

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Look at other dictionaries:

  • 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

  • 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;… …   Black's law dictionary

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