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What is a debenture?

What is a debenture? Here are some definitions.

Noun
  1. A certificate that certifies an amount of money owed to someone; a certificate of indebtedness.
  2. (obsolete) A certificate of a loan made to the government; a government bond.
  3. (finance) In the USA: A type of debt instrument secured only by the general credit or promise to pay of the issuer, not involving any physical assets or collateral, now commonly issued by large, well established corporations with adequate credit ratings.
  4. (finance) In the UK: A document granting lenders a charge over a borrower’s physical assets, giving them a means to collect a debt, as part of a secured loan.
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Examples
Dhirubhai held annual meetings in football stadiums and scattered subscription forms for one debenture from a helicopter.
Annual payments to service this debenture is being provided to a trust through blocked accounts held by each of the fifty-five boards.
The scheme could be a one-off pledge or renewable annually as a type of debenture or membership fee.
The debenture holders, who own the seats, see the value of their debentures continue to rise.
This debenture was designated as a hedge of net investment in a self-sustaining foreign operation.
The finance company is unable to repay their debenture due to defaults on their loan book, so they are unable to recoup their principal.

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