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Simple English definitions for legal terms
indenture
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A quick definition of indenture:
An indenture is a special kind of contract between two or more people. It started a long time ago in England and was used to talk about things like land and work agreements. Nowadays, we still use indentures for some kinds of work contracts, like apprenticeships. We also use them when companies want to borrow money by selling bonds. An indenture is like a special set of rules that everyone agrees to follow so that everyone knows what to expect.
A more thorough explanation:
An indenture is a formal contract or deed made between two or more parties. It was first used in medieval England and is still used today. An indenture is a specific agreement within a contract that is noted with a specific duration or significance.
For example, in the past, indentures were used to convey land and for service contracts of seven years. Today, indentures are used for some apprenticeship contracts in the U.S. Bond indentures are also used to delineate various interests when companies issue bonds in financing agreements. These create assurances for the bonds. A corporate indenture would be a deed describing terms and conditions for debt securities issuance.
Overall, an indenture is a formal agreement that outlines specific terms and conditions between two or more parties. It is a legally binding document that is used to ensure that all parties involved understand their obligations and responsibilities.