In finance, a debenture is a long-term debt instrument used by governments and large companies to get funds. It is similar to a bond apart from the securitization conditions are different. A debenture is frequently unsecured in the sense that there are no liens or pledges on specific assets. It is however, secured by all property not otherwise pledged. In the case of insolvency debenture holders are considered general creditors.
The advantage of debentures to the issuer is they leave specific assets imaginative, and thereby leave them open for subsequent financing. Debentures are generally freely transferable by the debenture holder.
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