Debenture

Bond
Bonds are IOUs issued by borrowers to lenders. These instruments come in various forms and are typically used by governments, local authorities, or companies to raise funds, offering fixed or variable interest rates and different terms.
Charge in Accounting
A charge is a legal interest in property or shares used to secure the payment of money owed, giving the chargee priority over unsecured creditors.
Debenture
A debenture is the most common form of long-term loan taken by a company, offering a fixed date for repayment and often secured against the borrower's assets.
Debt
Debt is an amount of money borrowed by one party from another, which is often incurred by businesses and individuals to finance specific activities or projects.
First Mortgage Debenture
A first mortgage debenture is a type of debenture that holds the first charge over property owned by a company, often utilized by property companies to secure financing.
Secured Bond
A secured bond is a type of bond backed by some form of collateral such as a mortgage or other lien. The specifics of the security are detailed in the bond agreement, known as an indenture. Unlike secured bonds, debentures (unsecured bonds) are not backed by collateral.
Unsecured Loan Stock (ULS)
Unsecured Loan Stock (ULS) refers to a type of loan stock or debenture that is not backed by specific assets, making it a type of unsecured debt.

Accounting Terms Lexicon

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