DEBENTURE

a writing promising to repay a specified sum at a given date, with interest half-yearly. It usually gives @ ‘floating charge’ on the a ets of the company i uing the debenture as security for the loan. A floating charge means that the whole of the company’s property, present and future, is security for the loan, but that the company, until the charge becomes a fixed charge or the debenture-holders euforce their rights, has power to deal with any specific part of its a ets in the ordinary course of its busine .