Fixed Debenture

Fixed Debenture
A note that carries a fixed (as opposed to floating) charge against the issuer’s property or assets for repayment. The charge will remain on the company’s records until the debenture is repaid. Corporations can issue fixed debentures to finance operations in the same way they issue stock. Fixed debentures can be issued singly or in a series. They pay out a fixed rate of interest at regular intervals.

Fixed charge debentures require restrictions on the underlying property or asset backing the loan to ensure the lenders' security. For example, a company may issue a fixed debenture to obtain a mortgage; the mortgage would most likely preclude the borrower (company) from subletting the mortgaged property to a third party.


Investment dictionary. . 2012.

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  • debenture — de·ben·ture /di ben chər/ n [Anglo French debentour and Medieval Latin debentura, perhaps from Latin debentur they are owed]: an unsecured bond that is backed by the issuer s general credit rather than a specific lien – called also debenture… …   Law dictionary

  • Debenture — De*ben ture (?; 135), n. [L. debentur they are due, fr. debere to owe; cf. F. debentur. So called because these receipts began with the words Debentur mihi.] 1. A writing acknowledging a debt; a writing or certificate signed by a public officer,… …   The Collaborative International Dictionary of English

  • debenture bonds — Debenture De*ben ture (?; 135), n. [L. debentur they are due, fr. debere to owe; cf. F. debentur. So called because these receipts began with the words Debentur mihi.] 1. A writing acknowledging a debt; a writing or certificate signed by a public …   The Collaborative International Dictionary of English

  • fixed charge — n: a regularly recurring expense (as rent, taxes, or interest) that must be met when due Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. fixed charge …   Law dictionary

  • debenture — Security instrument evidencing a debt due from one party to another, payable on demand or otherwise, which can be a fixed and/or floating charge on assets and which can grant the lender broad powers to recover the amount due upon default,… …   Glossary of Bankruptcy

  • debenture — ► NOUN Brit. ▪ a bond of a company acknowledging a debt and yielding a fixed rate of interest. ORIGIN Latin debentur are owing (used as the first word of a certificate recording a debt), from debere owe …   English terms dictionary

  • Debenture — For debentures in sport, see debenture (sport). Finance Financial markets …   Wikipedia

  • Debenture (sport) — For other uses, see Debenture. In sport, a debenture is defined as a certificate of agreement of loans which is given under the company s stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of… …   Wikipedia

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