Agreement between lender and borrower that details specific terms of the bond issuance. Specifies legal obligations of bond issuer and rights of bondholders. An indenture spells out the specific terms of a bond, as well as the rights and responsibilities of both the issuer of the security and the holder. Bloomberg Financial Dictionary
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indenture in‧den‧ture [ɪnˈdentʆə ǁ -ər] noun [countable]
1. FINANCE a legal agreement between an organization that borrows money by Issuing bonds (= making them available), and the lenders, stating the interest, the date they will be repaid etc:
• The homebuilder said it made the interest payments last June in stock, not cash, as allowed by the indentures for the debt.
2. LAW a legal agreement, especially one in former times between an employer and an apprentice (= a young person who receives training from an employer to do a particular job), stating the terms of the worker's employment
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indenture UK US /ɪnˈdentʃər/ noun [C]
► FINANCE a written agreement that states the rights and responsibilities of a company that sells a bond and someone who buys it: »
The securities were issued under an indenture, dated as of June 1, 2009.
»an indenture trustee.
► especially in the past, a formal agreement that someone will work for someone else for a particular length of time, especially in order to learn a job: »
On the completion of his indenture, he continued to attend night school.
»The apprenticeship indentures were signed by the guild master and the apprentice's guardian.
Financial and business terms. 2012.