Indenture For Notes In Montgomery
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The term is used for any kind of deed executed by more than one party, in contrast to a deed poll which is made by one individual. In the case of bonds, the indenture shows the pledge, promises, representations and covenants of the issuing party.
A bond indenture is held by a trustee. If the company fails to live up to the terms of the bond indenture, the trustee may bring legal action against the company on behalf of the bondholders. The offering memorandum, also known as a prospectus, is a document that describes a financial security for potential buyers.
The terms of the Indenture are tailored to reflect the specific type of transaction and issuer. Like credit agreements,1 an Indenture contains lending and repayment terms. In contrast to credit agreements, however, the lender is not a party to an Indenture.
Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance. Indentures were initially used to convey land and for service contracts of seven years. Indentures still exist today.
A written agreement between the issuer of debt securities (such as bonds, notes, or debentures) and the trustee for the debt securities acting as a representative of the securityholders that specifies the terms and conditions of the debt securities, including the interest rate, maturity, any redemption terms, timing, ...
The Indenture pledges certain revenues as security for repayment of the Bonds. The Trustee agrees to act on behalf of the holders of the Bonds and to represent their interests.
What is the primary purpose of a bond indenture? To specify the bond's features and identify the issuer's sources of repayment. To provide a detailed history of the issuer's past financial performance.
In real estate, an indenture is a deed in which two parties agree to continuing obligations. For example, one party may agree to maintain a property and the other may agree to make payments on it.
