Debenture
2 definitions found for this term.
Definitions are presented in the order source books were published (most recent first).
Source:
A loan raised by a company paying a fixed rate of interest, usually with a maturity of ten years or more, and secured on the general, rather than specific, assets of the company.
Source:
Sometimes refers to a document evidencing a debt obligation (e.g., Salomon v. Salomon & Co., [1897] A.C. 22 (H.L.), but when it is used by bankers it may mean the document evidencing the security for repayment of a debt as well as the document evidencing the debt. When the term is used by accountants it means an unsecured debt obligation. Debenture has no precise meaning.
