Indenture Encrypt For Free

An indenture is a particular formal contract or deed made between two or more parties. Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance.

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.

An indenture is a particular formal contract or deed made between two or more parties. Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance.

The term comes from the medieval English "indenture of retainer"[1] ? a legal contract written in duplicate on the same sheet, with the copies separated by cutting along a jagged (toothed, hence the term "indenture") line so that the teeth of the two parts could later be refitted to confirm authenticity (Chirograph).

The deeds which are made only by one party are known as Deed Poll and they are generally drafted in first person. Those deeds wherein there are two or more parties involved are called as Indentures.

Example of Indenture The agreement mentions that XYZ Inc. would maintain a debt-equity ratio of 2.0x throughout the tenure of the loan, and any breach would trigger the event. Therefore, the borrower (XYZ Inc.) and the lender (ABC Bank) agreed upon this condition of maintaining the debt-equity ratio above 2.0x.

Credit indentures are usually offered for bond issuers and bondholders. When a bond is secured the credit indenture is more commonly known as a bond indenture, and when a bond is not secured the credit indenture is most often called a debenture.