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debenture n

[Anglo-French debentour and Medieval Latin debentura, perhaps from Latin debentur they are owed]
: an unsecured bond that is backed by the issuer's general credit rather than a specific lien called also debenture bond see also indenture compare mortgage bond at bond NOTE: Debentures are often convertible to stocks.

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.

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