debenture
noun/dɪˈbentʃə(r)/
/dɪˈbentʃər/
(finance)- (British English) an arrangement to invest money in a company in return for a fixed rate of interest. The money is secured against property owned by the company.
- Payment of interest is made to the debenture holder at a specified rate and at clearly defined intervals.
- (also debenture bond)(North American English) an unsecured loan to a company with a fixed rate of interest
Word Originlate Middle English (denoting a voucher issued by a royal household, giving the right to claim payment for goods or services): from Latin debentur ‘are owing’ (from debere ‘owe’), used as the first word of a certificate recording a debt. The current sense dates from the mid 19th cent.
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debenture