What is a debenture?
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 ('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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