Indenture Meaning With Examples In Washington
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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.
Draft an indenture agreement Brainstorm potential clauses to include in the indenture agreement. Identify and research any applicable laws and regulations. Draft the agreement, being sure to include all necessary terms and conditions. Review and revise the agreement as needed.
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 term is used for any kind of deed executed by more than one party, in contrast to a deed poll which is made by one individual. In the case of bonds, the indenture shows the pledge, promises, representations and covenants of the issuing party.
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 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.
Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance. Indentures were initially used to convey land and for service contracts of seven years. Indentures still exist today.
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.
