rhizoverbBeta
DictionarydebentureUnsecured debt
noun

debenture

dih-BEN-cher/dɪˈbentʃər/

A debt instrument backed by the issuer’s general credit rather than specific assets.

The company issues a debenture backed by its general credit.

A debt certificate with ONLY essential '10 years' between an investor's coin stack and a small company-building vignette; two opposing arrows show money lent now and promised repayment, no collateral property or labels.
Etymology
deLatinaway
+bentureLatinto have, hold

Keeping something away from someone underlies the idea of owing. Latin debentur, “there are owing,” is said to have opened debt certificates; their name developed into a term for a bond.

In context

Beau Eckstein, Business Ownership Coach1:12
basically we're talking about the 504 debenture
What is an SBA 504 Debenture?

More examples

  • This debenture pays interest twice a year.
  • Investors review the issuer’s credit rating before buying its debentures.
  • Unlike a secured bond, a debenture pledges no specific assets as collateral.

Forms

debenture · debentures

Similar words

bond
A broader term covering both secured and unsecured debt.
note
A written repayment promise that may be secured or unsecured.