debenture

Related Terms
A promissory note or a corporate bond which (in the US) is backed generally only by the reputation and integrity of the borrower and (in the UK) by the borrower's specific assets.

When unsecured, it is called a bare debenture or naked debenture; when secured by a charge on a specific property, it is called a mortgage debenture.

Use 'debenture' in a Sentence

A debenture can be utilized to gain a loan or other type of investment based solely on good faith between two parties, but it is better to always pay in full.
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Having no collateral, the young couple was able to obtain a mortgage debenture based on their fine family backgrounds and posh upbringing.
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I knew I could trust the debenture based on my prior experience with it and the fact that I knew what it was.
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