What are indentures and covenants?
What are indentures and covenants?
What are Covenants? The issuer and a trustee enter into a legally binding agreement called a trust indenture. The indenture outlines all financial covenants, the terms of agreement (covenants) that protect all parties’ interests until the maturity of the bond or the specified duration of the covenant.
What covenant means?
an agreement, usually formal, between two or more persons to do or not do something specified. a solemn agreement between the members of a church to act together in harmony with the precepts of the gospel. (initial capital letter)History/Historical. National Covenant.
What are indentures in real estate?
1) Generally, any written agreement between two parties. 2) A real estate deed in which two parties agree to continuing obligations; for example, one party may agree to maintain the property and the other to make periodic payments.
What is a covenant and agreement?
An agreement, contract, or written promise between two individuals that frequently constitutes a pledge to do or refrain from doing something. The individual making the promise or agreement is known as the covenantor, and the individual to whom such promise is made is called the covenantee.
What are covenants in law?
A covenant in contract law refers to a promise made by one party to another to either do or refrain from doing a certain act. A key aspect of a covenant is that the promise can be made and enforceable between the parties, in the absence of consideration.
What is the difference between debenture and indenture?
is that debenture is a certificate that certifies an amount of money owed to someone; a certificate of indebtedness while indenture is (legal) a contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice).
What’s the difference between a covenant and a law?
A covenant is generally an agreement between two or more people and entered into willingly on all sides. A covenant is a binding agreement, a contract. It applies to the parties signed up to it. A law applies to all those under the jurisdiction of the body that enacts it (government, sporting, religious etc.).
What is in an indenture?
An indenture is a legal and binding contract usually associated with bond agreements,real estate,or bankruptcy.
What is included in a bond indenture?
Between bond issuers and bondholders, an indenture is a legal and binding contract specifying all the important features of a bond, such as its maturity date, timing of interest payments, method of interest calculation, and callable or convertible features, if applicable.
What is the meaning of indenture?
1a(1) : a document or a section of a document that is indented. (2) : a formal or official document usually executed in two or more copies. (3) : a contract binding one person to work for another for a given period of time —often used in plural.
What is an indenture agreement?
Indenture refers to a legal and binding agreement, contract or document between two or more parties. Traditionally, these documents featured indented sides, as indicated by their name. Historically, indenture also refers to a contract binding one person to work for another for a set period of time, such as an indentured servant.
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