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Debenture
01
a financial pact with details about interest rates and when the borrowed money will be paid back, not tied to any specific belongings
02
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future
Example
The debenture specified the annual interest payments and maturity date.
The debenture outlined the terms for repayment over a ten-year period.
The company issued a debenture to raise funds for its expansion project
Unlike secured bonds, this debenture was not tied to any specific assets.
She purchased a debenture from the corporation to secure a steady income stream.
