Debentures

A debenture is the traditional name given to a loan agreement where the borrower is a company. Typically, a debenture will set out the terms of the loan: the amount borrowed, repayment terms, interest, charges securing the loan, provisions for protecting and insuring the property etc., and terms for enforcement if the company defaults. Debentures are usually secured by charges on the company's property, but do not have to be (called 'bare' or 'naked' debentures). There are different types of charges. Debentures, as such, do not have to be registered, but charges securing them do.

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