An investment bond (sometimes called a debenture) issued by a corporation is an instrument promising to repay a loan to a corporation, which is may be secured by corporate assets. The relation between a bondholder and the corporation is that of a creditor-debtor. The principal on the debt is paid on the maturity date. The obligations evidenced by the bond may be secured or unsecured.
A registered bond is one issued with the name of the owner printed on the face of the certificate. It can be transferred to another individual only with the owner's endorsement.
