debenture

Meanings

Plural: debentures

Noun

• the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future
• a certificate or voucher acknowledging a debt
• A certificate that certifies an amount of money owed to someone; a certificate of indebtedness.
• A certificate of a loan made to the government; a government bond.
• 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.

Synonyms

debenture bond, unsecured bond

Antonyms

secured bond