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Indenture

• Agreement between lender and borrower which details specific terms of the bond issuance. Specifies legal obligations of bond issuer and rights of bondholders.

 
 Embedded terms in definition
 Bond
Issuer
Rights
 
 Referenced Terms
 Asset coverage test: A bond Indenture restriction that permits additional borrowing on if the ratio of assets to debt does not fall below a specified minimum.

 Bond covenant: A contractual provision in a bond Indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.

 Covenants: Are formal conditions or clauses which are written into credit agreements. Often the document which contains these covenants and terms is called the Indenture.Provisions in a bond Indenture or preferred stock agreement that require the bond or preferred stock issuer to take certain specified actions (affirmative covenants) or to refrain from taking certain specified actions (negative covenants).

 Covenants: Are formal conditions or clauses which are written into credit agreements. Often the document which contains these covenants and terms is called the Indenture.Provisions in a bond Indenture or preferred stock agreement that require the bond or preferred stock issuer to take certain specified actions (affirmative covenants) or to refrain from taking certain specified actions (negative covenants).

 Deed of trust: Indenture.

 
 Related Terms
 Bond indenture
Indenture of a bond
Trust indenture

<< Incremental internal rate of return Indenture of a bond >>

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