debenture

A debenture is a document that records the borrowing of money by a company with reference to the debt. As such, debentures are security documents evidencing a debt, and repayments may come from the capital reserves.

Usage: The debenture was issued by the bank to secure its loan to the company.

Related Words: ordinary shares; preference shares; redeemable shares; limited company; unlimited company; fixed charge; floating charge; separate legal personality; separate legal entity.