Trust Indenture Act of 1939

The Trust Indenture Act of 1939 is a U.S. law that regulates the issuance of bonds by large companies and financial institutions. It requires these entities to have a formal agreement, called a trust indenture, with a qualified trustee to protect bondholders’ interests. The act ensures transparency, sets standards for the bond agreements, and provides mechanisms for handling disputes, ultimately safeguarding investors and maintaining confidence in the bond market.