What is a Bond Indenture?
As part of the process of buying and selling bonds, the bond indenture provides the means of articulating the terms and conditions for the transaction. The specifications within the bond indenture define both the responsibilities and commitments of the seller as well as those of the buyer. Much of the information that is contained in the bond indenture has to do with the description and sales information that is related to the bond. The issuer of a bond will use the indenture to describe the form of the bond, providing a description that will include enough detail about the issuer and the bond trustee for interested investors to research the background of the bond issue. Within the text of the bond indenture, there are also specifics about the repayment schedule that will be managed by the bond trustee. This is to ensure that the bondholder is clear on when to expect interest payments, as well as whom to contact in the event of questions or concerns. Other important data supplied withi
