Debenture

Written acknowledgment of a debt secured only by the general creditor promise to pay of the issuer. Debentures are the common type of bond issuedby large, well-established corporations with adequate credit ratings. Thewritten agreement under which the debentures are sold, the indenture, isspecific as to maturity date, interest rate, call features and convertibility.Holders of debentures representing corporate indebtedness are creditors of thecorporation and entitled to payment before shareholders upon dissolution of thecorporation.