debenture
/dɪˈbɛntʃər/
noun
- A type of bond or debt instrument that is not backed by physical assets or collateral, but by the general creditworthiness of the issuer.
- The company issued debentures to raise money for expansion without putting up property as security.
- Unlike a mortgage bond, a debenture relies only on the promise of the borrower to repay.
- Investors bought the debenture because they trusted the corporation's reputation.