Bond With Indenture In Utah
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An indenture is a legal and binding contract usually associated with bond agreements, real estate, or bankruptcy. An indenture provides detailed information on terms, clauses, and covenants. There can be a few different types of indentures and many different types of indenture clauses.
A bond indenture is a legal contract issued to lenders that defines the commitments and responsibilities of the seller and buyer. Bond credit rating agencies assess and report the creditworthiness of a corporation's or government's debt issues.
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.
A bond certificate is a legal document that is provided to an investor when an investor purchases a bond from another entity. A bond is a type of debt, and a bond certificate will state the terms of the debt agreement.
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.
A contract between an Issuer and a Trustee (normally a commercial bank with trust powers) under which the Issuer issues Bonds and specifies their Maturities, Interest Rates, Redemption provisions, form, exchange provisions, security and other terms.
A covenant is a promise to take an action (an affirmative covenant) or to refrain from taking an action (a negative covenant). Indentures contain a variety of covenants from the issuer to the trustee on behalf of the bondholders.
