What is the difference between a deed and an indenture?

As nouns the difference between indenture and deed is that indenture is (legal) a contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice) while deed is an action or act; something that is done.

What does a trust indenture do?

key takeaways. A trust indenture is legal and binding bond contract made between a bond issuer and a trustee to protect the bondholder’s interests. It also delineates the amount of additional debt the issuer can assume, and the circumstances and procedures in case of issuer default.

What is indenture deed mean?

1) Generally, any written agreement between two parties. 2) A real estate deed in which two parties agree to continuing obligations; for example, one party may agree to maintain the property and the other to make periodic payments.

What is included in an indenture agreement?

An indenture agreement is the formal contract between a bond issuer and the bondholders. It sets forth the details of all the terms and conditions of the bonds, such as the exact day of their maturity, the timing of the interest payments and how they are calculated, and the details of any special features.

Is an indenture the same as a deed in real estate?

Real Estate Indenture In real estate, an indenture is a deed in which two parties agree to continuing obligations. For example, one party may agree to maintain a property and the other may agree to make payments on it.

Is an indenture the same as a mortgage?

At its simplest, an indenture is an agreement that declares benefits and obligations between two or more parties. In bankruptcy law, for example, it is a mortgage or deed of trust that constitutes a claim against a debtor. The most common usage of indenture appears in the bond market.

Is a trust indenture a mortgage?

A deed of trust, like a mortgage, pledges real property to secure a loan. This document is used instead of a mortgage in some states. While a mortgage involves two parties, a deed of trust involves three: the trustor (the borrower)

What is the difference between an indenture and a conveyance?

A Conveyance (or Deed of Conveyance) is the document by which the sale of a parcel of unregistered land is effected. Indenture of Conveyance is effectively just an old fashioned alternative name for a conveyance. A Transfer Deed is the document by which the sale of a parcel of registered land is effected.

What type of document is an indenture?

Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges.

What does indenture of mortgage mean?

Indenture of Mortgage means the registered mortgage deed to be executed by the Issuer for, inter alia, creation of mortgage over the immoveable property of the Issuer and assignment of its rights under the Project Documents in favour of the Security Trustee, in form and substance satisfactory to the Security Trustee.

What is a trust deed on a house?

A Deed of Trust is a type of secured real-estate transaction that some states use instead of mortgages. In most states, the borrower actually transfers legal title to the trustee, who holds the property in trust for the use and benefit of the borrower. In other states, the trustee merely holds a lien on the property.

What is indindenture deed of trust?

Indenture Deed of Trust means that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of December 19, 2002, made by the Company to the Trustee for the benefit of the holders of the Senior Secured Notes, as security for the payment of the Senior Secured Notes, as in effect on the Effective Date.

What is an example of a trust indenture?

For example, a trust indenture may indicate whether an issued bond is callable. If the issuer can “call” the bond, the indenture will include call protection for the bondholder, which is the period during which the issuer cannot repurchase the bonds from the market.

Do I need to file a copy of my trust indenture?

A copy of the indenture must be filed with the Securities and Exchange Commission (SEC) for corporate bonds with aggregate principal issues of at least $5 million. Corporate issues for less than $5 million, municipal bonds, and bonds issued by the government are not required to file trust indentures with the SEC.

What are protected or restrictive covenants in a trust indenture?

Protective or restrictive covenants are highlighted in a trust indenture. For example, a trust indenture may indicate whether an issued bond is callable. If the issuer can “call” the bond, the indenture will include call protection for the bondholder, which is the period during which the issuer cannot repurchase the bonds from the market.