Indenture

An indenture is a formal written agreement or contract, often used in finance, that details the terms and conditions between a borrower and lenders or investors. For example, when a company issues bonds, the indenture outlines key details like the interest rate, repayment schedule, and rights of the bondholders. It serves as a legal document ensuring both parties understand their obligations and protections. Essentially, it’s a detailed blueprint that clarifies the responsibilities and rights associated with a financial arrangement, helping to safeguard the interests of everyone involved.