Debenture Legal Meaning and Definition

Here is a simplified definition of the legal term Debenture.

Debenture (noun) - A type of bond or long-term debt instrument that big companies or governments issue to raise funds. In the event of bankruptcy, repayment to the investor is made from the company's capital evaluation. A debenture doesn't require collateral, but the holders have a claim on the issuer's assets if they default on repayment.