debentures


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Debenture

A debt security, issued by a government or large company, that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. That is, a debenture carries no collateral and is considered unsecured; in case of bankruptcy, the debenture holder is considered a general creditor. A debenture can be traded, and the term is often interchangeable with a bond. Debentures issued by governments are considered risk-free. See also: Treasury security.

debentures

a means of financing companies through fixed-interest LOANS secured against company ASSETS. In some cases the company may offer a specific asset such as a particular machine as security for the loan (fixed charge); in other cases lenders are offered security by means of a general claim against all company assets in the event of default (floating charge). Most debentures are redeemable by the borrower at a future specified date, say 10 or 15 years from the date of issue. Some debentures, however, are irredeemable and never have to be repaid, the lender continuing to be rewarded through interest payments forever. See LOAN CAPITAL, CONVERTIBLE LOAN STOCK.

debentures

a means of financing companies through fixed-interest LOANS secured against company ASSETS.

In some cases the company may offer a specific asset, such as a particular machine, as security for the loan; in other cases lenders are offered security by means of a general claim against all company assets in the event of default. See LOAN CAPITAL.

References in periodicals archive ?
The conversion period for the Debentures remains unchanged and is set to expire at 5:00 p.m.
A total of approximately 2.1 million shares of Expedia common stock are attributable to the debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing September 30, 2017.
The debentures may be redeemed by Liberty, in whole or in part, on or after October 5, 2021.
This has been agreed upon at the meeting of the parliamentary committee on financing and budget, at which the second debate concerning the proposed modifications to the debenture law and the financial discipline law took place.
"The RFU has told him that it will honour his debentures for Rugby World Cup matches in 2015.
"I have told Roger Lewis that the rights of debenture holders must be upheld.
The interest rate of the USD50,000 debenture remains unchanged at 3 percent, so the interest rate of the USD40,000 debenture is 7 percent per annum.
M2 PHARMA-December 16, 2011-Cynapsus unveils secured series E-3 debenture financing(C)2011 M2 COMMUNICATIONS
Michael W Trudnak, the company chairman and chief executive officer, said 'This debenture restructuring is a major achievement for Applied Visual Sciences, and it comes at a critical time for the company.
Among them are mainly government-linked banks, including Hua Nan Bank, Land Bank of Taiwan, and Taiwan Cooperative Bank, which are expected to issue the above-mentioned bank debentures totaling US$1.25 billion for the year.
Mizuho Bank said Wednesday it will end over-the-counter sales of one- and five-year ''wariko'' bank debentures to individuals in March next year.