Indenture

An indenture is a written contract between a bond issuer and bond holder that is proof of the bond issuer's indebtedness and specifies the terms of the arrangement, including the maturity date, the interest rate, whether the bond is convertible to common stock, and, if so, the price or ratio of the conversion.

The indenture, which may be called a deed of trust, also includes whether the bond is callable - or can be redeemed by the issuer before it matures - what property, if any, is pledged as security, and any other terms.