debenture

American  

[dih-ben-cher] / dɪˈbɛn tʃər /

noun

1. certificate of indebtedness.

2. a certificate of drawback issued at a custom house.

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debenture British  

/ dɪˈbɛntʃə /

noun

1. Also called: debenture bond.  a long-term bond, bearing fixed interest and usually unsecured, issued by a company or governmental agency

2. a certificate acknowledging the debt of a stated sum of money to a specified person

3. a customs certificate providing for a refund of excise or import duty

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Other Word Forms

Derived Forms

• debentured
  adjective

Etymology

Origin of debenture

1425–75; late Middle English debentur < Latin dēbentur ( mihi ) there are owing (to me), 3rd person plural passive indicative of dēbēre to owe ( see debt)

Explanation

A document that tells how much money you owe someone is a debenture. If you borrow ten dollars from the neighbor kid's lemonade stand earnings, you'd better at least leave him a debenture. Debenture, pronounced "deh-BEN-chur," looks and sounds like its Latin root, debentur, which means "there are due." A debenture is a receipt or certificate that acknowledges a debt, which you give someone who loans you money. Debenture is also your ability to use credit to get things now that you promise to pay for later.