Trust Indenture Act of 1939

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Trust Indenture Act of 1939

A law that requires all corporate bonds and other debt securities to be issued subject to indenture agreements and comply with certain indenture provisions approved by the SEC.
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Trust Indenture Act of 1939

Legislation in the United States requiring the appointment of an independent trustee to act on behalf of bondholders in each issue of debt securities. The Act also mandates that bond indentures must conform to certain standards set forth by the SEC and the Act itself, and that issuers must report their financial information periodically. The Trust Indenture Act was designed to increase transparency in the bond market and to protect the rights of bondholders.
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Trust Indenture Act of 1939

The legislation that established rights for security holders under indenture agreements. The Act sets standards for trustees, requires financial reports by the issuers to the trustees, and mandates disclosure of owners' rights under the indenture agreements.
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.
References in periodicals archive ?
"Because the courts have not directly addressed whether the Trust Indenture Act precludes a direct release of a guarantee without unanimous noteholder consent, corporate attorneys employ a work-around for the benefit of minority bondholders," said Judah Gross, Director.
"We strongly urge Congress to leave out the erroneous Trust Indenture Act provision in the omnibus bill," he said.
On December 23, the United States Court of Appeals for the Second Circuit issued an opinion on an issue of first impression, namely the scope of [section] 304(a)(2) of the Trust Indenture Act of 1939,15 U.S.C.
The complaint included claims for violating the Trust Indenture Act of 1939, breach of contract, and breach of the implied covenant of good faith and fair dealing.
Before the Trust Indenture Act of 1939 (TIA), no law in the United States specifically provided protections to bondholders from what is generally referred to as the collective-action problem.
The act makes it a criminal offense (now punishable, post-Sarbanes-Oxley and, hence, post-Enron, by up to 25 years in prison per count) to willfully violate any provision of the securities statutes (see also the Securities Act of 1933, section 24; the Bank Holding Company Act, section 29; the Trust Indenture Act, section 325; the Investment Company Act of 1940, section 49; and the Investment Advisers Act of 1940, section 217).
We do, however, advocate removing regulatory barriers created by the Trust Indenture Act that impede the implementation of the supertrustee proposal.
Corporate Trust Functions Under the Trust Indenture Act
This is consistent with the Trust Indenture Act of 1939.