A type of debt instrument secured only by the general credit or promise to pay of the issuer, not involving any physical assets or collateral, now commonly issued by large, well established corporations with adequate credit ratings.
A document granting lenders a charge over a borrower’s physical assets, giving them a means to collect a debt, as part of a secured loan.
Origin
Originally debentur, from Latin debentur, supposedly the first word of such a document in early times.
Modern English dictionary
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