Definitions for debenturedɪˈbɛn tʃər
This page provides all possible meanings and translations of the word debenture
unsecured bond, debenture, debenture bond(noun)
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future
a certificate or voucher acknowledging a debt
A certificate that certifies an amount of money owed to someone; a certificate of indebtedness.
A certificate of a loan made to the government; a government bond.
A type of bond secured only by the general credit or promise to pay of the issuer, now commonly issued by large, well established corporations with adequate credit ratings.
Origin: Originally debentur, from debentur, supposedly the first word of such a document in early times.
a writing acknowledging a debt; a writing or certificate signed by a public officer, as evidence of a debt due to some person; the sum thus due
a customhouse certificate entitling an exporter of imported goods to a drawback of duties paid on their importation
Origin: [L. debentur they are due, fr. debere to owe; cf. F. debentur. So called because these receipts began with the words Debentur mihi.]
A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital. Senior debentures get paid before subordinate debentures, and there are varying rates of risk and payoff for these categories. Debentures are generally freely transferable by the debenture holder. Debenture holders have no rights to vote in the company's general meetings of shareholders, but they may have separate meetings or votes e.g. on changes to the rights attached to the debentures. The interest paid to them is a charge against profit in the company's financial statements.
The Nuttall Encyclopedia
a deed acknowledging a debt on a specified security.
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