Debenture – Type of loan where a company pays a fixed rate of interest
(Pronounced di-ben-chuh)
To remember the definition of the word debenture, use the following mnemonic:
The bent creature (debenture) had a loan fixed (fixed-rate loan) to its back.
Examples of debenture in a sentence
A debenture holder has priority over an ordinary shareholder.
The interest paid to debenture holders is deductible when calculating taxable profits, unlike dividend payments.
Yacht and boat clubs are starting to finance pontoon berthing facilities by means of debenture schemes amongst their members.
