Debenture |
| A type of long-term unsecured bond (loan), taken out by a company, which it agrees to repay at a specified future date. The company will usually pay a fixed rate of interest to debenture holders each year until maturity, and if it fails to pay either the interest or the principal amount of the loan when the time comes, the debenture holders can force the company into liquidation and try to recover, along with other creditors, their money from a sale of its assets. |
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