Indenture Meaning With Examples In Travis
Description
Form popularity
FAQ
What is the primary purpose of a bond indenture? To specify the bond's features and identify the issuer's sources of repayment. To provide a detailed history of the issuer's past financial performance.
The bond indenture is a legal document that defines the terms of the bond issue including the rights of bondholders; the bond certificate provides details about the bond being issued including the financial elements of the bond.
For example, a trust indenture may indicate whether an issued bond is callable. If the issuer can “call” the bond, the indenture will include call protection for the bondholder, which is the period during which the issuer cannot repurchase the bonds from the market.
In real estate, an indenture is a deed in which two parties agree to continuing obligations. For example, one party may agree to maintain a property and the other may agree to make payments on it.
The Indenture pledges certain revenues as security for repayment of the Bonds. The Trustee agrees to act on behalf of the holders of the Bonds and to represent their interests.
Meaning of indentured in English relating to an official agreement that someone will work for someone else for a length of time, especially in order to learn a job: He served an indentured apprenticeship in mechanical engineering.
(in the past) to officially agree that someone, often a young person, will work for someone else, especially in order to learn a job: be indentured to He was indentured to a carpenter. The land was worked on by indentured servants.
Indenture. n. a type of real property deed in which two parties agree to continuing mutual obligations. One party may agree to maintain the property, while the other agrees to make periodic payments. 2) a contract binding one person to work for another.
The terms of the Indenture are tailored to reflect the specific type of transaction and issuer. Like credit agreements,1 an Indenture contains lending and repayment terms. In contrast to credit agreements, however, the lender is not a party to an Indenture.
Some indentured servants served as cooks, gardeners, housekeepers, field workers, or general laborers, while others learned specific trades such as blacksmithing, plastering, and bricklaying, which they often parlayed into future careers.
