Trust Indenture Act

The Trust Indenture Act is a U.S. law that regulates agreements between bond issuers and bondholders. It ensures that these agreements, called indentures, are fair and transparent. The Act requires that certain information about the bonds, like the rights of bondholders and obligations of issuers, is clearly outlined. It aims to protect investors by setting standards for the issuance and management of corporate bonds, ensuring that bondholders have legal recourse if their rights are violated. Essentially, it helps maintain trust and accountability in the bond market.