Definition of Bond indenture:
Blanket, unconditional contract between the bond issuer and the bond purchaser (bondholder) that specifies the terms of the bond. It states the interest rate (called coupon rate), the dates when the interest will be paid, maturity date(s), and other terms and conditions of the bond issue. Failure to meet the payment requirements calls for drastic penalties including liquidation of the issuers assets. Also called bond resolution or bond contract. See also deed of trust.
How to use Bond indenture in a sentence?
- The bond indenture was official and both parties were looking forward to fulfilling their ends of the brand new contract.
- You need to understand where your bond indenture stands and be able to quickly make any adjustments if things change.
- The bond indenture ensured a specific type of lending agreement would be experienced between both the buyer and the seller.
Meaning of Bond indenture & Bond indenture Definition