Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Indenture is a legal contract between a borrower and a lender that outlines the terms and conditions of a debt issue.Learn about types, terms and sig. An indenture is a legal contract that reflects an agreement between two parties. Although the term is most familiarly used to refer to a labor contract. An indenture is a formal contract or deed made between two or more parties. It was first used in medieval England and is still used today. Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance. A written agreement between the issuer of a bond and bondholders that specifies maturity date, interest rate, convertibility, and any other options. Bond Indenture means, for any series of Bonds, the indenture pursuant to which such Bonds are issued and any supplement thereto relating to such Bonds.