Indenture Agreement

Wed, Jul 16th,2014
An indenture is a formal agreement, also called a Deed of Trust, between an issuer of bonds and the bond holder covering such considerations as: 1) form of bond; 2) amount of the issue; 3) property pledged, if not a debenture issue; 4) protective covenants including any provision for a sinking fund; 5) working capital and current ratio; and 6) redemption rights or call provisions. An indenture agreement also has a provision for the appointment of a trustee to act on behalf bond holders.