Definition: A bond indenture is a legal document or contract between the bond issuer and the bondholder that records the obligations of the bond issuer and benefits owed to the bondholder. The bond indenture also includes the details of the rights of ownership as well as the rights of the bondholder to receive interest payments and principle payments in the future. In simplest terms, a bond indenture is the contract between the bond issuer and an investor. The contract outlines the terms of the bond, the promise of the issuer and your rights as an investor. Some of the aspects covered in a bond indenture, also called a bond indenture agreement, include the maturity date, the coupon rate (stated rate of interest) and any special features of the particular bond. An Indenture Agreement is a legal document that is created between two parties when either of them is indented to provide his or her services to the other party for a stipulated period of time. A bond covenant is a legally binding term of agreement between a bond issuer and a bondholder. Bond covenants are designed to protect the interests of both parties.
4 Mar 2020 An indenture is a legal and binding contract usually associated with bond agreements, real estate, or bankruptcy. An indenture provides detailed 6 Jun 2019 An indenture agreement is the formal contract between a bond issuer and the bondholders. It sets forth the details of all the terms and A bond indenture agreement is a contract or legal document that records the obligations of the bond issuer and the benefits that will be given to the bondholder.
20 Feb 2017 The bond indenture normally specifi. formal agreement between the issuer of bonds and the bondholders as to terms of the debt 3. a contract 9 Aug 2018 For one, the redemption clause gives the bond issuer an option to redeem The indenture trustee, the notional representative of the bondholders, has in contract law is that the remedy in cases of contract breach that fully
Bond Indenture. A contract or written agreement between the issuer of a bond and the bondholder or investor is referred to a “bond indenture.” The bond indenture specifies the terms of the contract, including the interest rate, convertibility, maturity date, and other important terms.
The bond indenture is created during the bond issuing process when bond issuers are receiving approval from state and federal governments to issue bonds to the public. After an agreed upon amount of bonds is authorized by the applicable government agency, the company issuing the bonds must contract a bond indenture. A bond indenture is a legal contract between the bond issuer and the bondholder. As per the indenture definition, it has all details of the terms and conditions relating to the bonds. Information like the maturity date, the frequency of interest payment, and their calculation.