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Legal Dictionary
Term: debenture
1.
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.
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