| Commentary

11 Nature and origin of a debenture

| Commentary

C: DEBENTURES AND DEBENTURE STOCK

11 Nature and origin of a debenture

Although lacking a precise definition1, a debenture has, historically, been understood as a document that acknowledges a debt, generally involving an obligation to pay and accompanied by some form of charge or security2. However, a debenture may simply consist of an acknowledgement of indebtedness3. It also matters not that it may be describable in another manner4. Although it is not essential5, a debenture is normally executed as a deed. Very often a debenture will be one of a series of documents that rank equally in terms of priority but

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