debenture

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Related to Debenture Stock: preferred stock, bonds, debenture bond

debenture

(dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bondbond,
in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years.
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, and debenture stock is similar to preferred stock. In the United States the term is usually employed for a corporation certificate without special security, such as a mortgage, to back it up. Debentures are generally issued by service corporations that have few mortgageable assets, or by blue-chip companies that are stable enough to invite unsecured loans. In a typical debenture, the corporation promises to repay the principal either periodically or on a specified date, and with regular interest. The term is also used for a document by which a government is bound to pay a creditor money due after some condition has been fulfilled.

debenture

Commerce a customs certificate providing for a refund of excise or import duty
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Peel Holdings, which has gross assets valued at over pounds 2bn, took advantage of RBS's position in the capital markets arena to access additional funding via the issue of debenture stock.
Mucklow bought back pounds 6 million of the group's 11.5 per cent First Mortgage debenture stock 2014 at a cost of pounds 7.98 million.
The company has been acquired by Jobs.co.uk plc for a potential pounds 2.6 million, consisting of pounds 50,000 in cash and the rest in shares and debenture stock, subject to certain conditions being met.