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Agreement between lender and borrower that details specific terms of the bond issuance. Specifies legal obligations of bond issuer and rights of bondholders. An indenture spells out the specific terms of a bond, as well as the rights and responsibilities of both the issuer of the security and the holder.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


A contract for a bond. An indenture sets the terms of the bond; for example, it includes the coupon rate, the period until maturity, and whether the bond comes with any special features like convertibility or whether it is callable. All bonds must have an indenture. Indentures are usually summarized in a bond's prospectus.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A legal contract between a bond issuer and its lenders that specifies the terms of the issue. Typical provisions are the amount and dates of interest payments, name of the trustee, maturity date, collateral, restrictions on dividends or other borrowing, and specifics of a sinking fund or potential calls. It is the trustee's job to ensure that the terms of the indenture are fulfilled. Also called bond indenture, trust deed. See also covenant.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


An indenture is a written contract between a bond issuer and bond holder that is proof of the bond issuer's indebtedness and specifies the terms of the arrangement, including the maturity date, the interest rate, whether the bond is convertible to common stock, and, if so, the price or ratio of the conversion.

The indenture, which may be called a deed of trust, also includes whether the bond is callable -- or can be redeemed by the issuer before it matures -- what property, if any, is pledged as security, and any other terms.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
An increasing number of courts are taking a dim view of MERS-recorded mortgages and deeds of trust. To date, every state supreme court that has looked at the issue has concluded that, despite its boilerplate language, MERS is not a mortgagee or deed of trust beneficiary.
According to the Ottoman Empire's deeds of trust archive, literature, the knowledge of Islamic jurisprudence, and some mental knowledge were taught at some darulhuffazes (VAD 1576, 23-25).
Again, in many deeds of trust, assumption is allowed where "the borrower meets the requirements of the lender and pays the fees charged by the lender for similar transactions".
"But when some of those new deeds of trust began to default and attempts were made to do non-judicial trustee foreclosures rather than judicial foreclosures," explains Alan Fowler, president of the New Mexico Mortgage Lenders Association, "we found out that because of conflicts in the laws, yes, we could use deeds of trust as our security instrument, but statutes did not allow us to foreclose outside the courts.
(3.) Fairbanks deeds of trust information temporarily
It pointed out that this subsection is part of the law that grants homeowner associations priority for up to $1,200 or four months' assessments over deeds of trust in foreclosure proceedings.
Taken as true, plaintiff's allegations require that a forgery occurred, due to her apparent signatures on the deeds of trust. Since forgery is a type of fraud in Virginia, Va.
The new Lien Release Information Services enables customers to electronically update mortgage records using information abstracted from grant deeds, deeds of trust, mortgages, assignments and other premium content compiled by First American RES in more than 1,370 counties across the United States.
Vestin Realty was formerly known as Vestin Fund I LLC and invests in loans secured by real estate through deeds of trust or mortgages , defined as mortgage assets in its management agreement.
Designed for investments of $1,000 and up, the fund follows the lead of Vertical's prior offerings and invests primarily in assets of residential performing loans that are secured by first mortgages or deeds of trust.
Loans are secured by deeds of trust on real estate and are further secured by a promissory note and personal guarantee.
The plaintiffs' class is described as "people who paid off loans secured by deeds of trust on real property located within the State of California and, in connection therewith, were charged and paid fees for services relating to th reconveyance of the deeds of trust on their property and/or the preparation and recording of releases with respect thereto, but whose deeds of trust were not timely reconveyed and/or were never released."