What is Consumer Debenture?
Consumer debentures are a type of debentures that are made available to the general public. The consumer debenture is sold under the auspices of a financial institution, such as a bank or some other type of licensed financial enterprise. As with all types of transactions, financial institutions must be properly authorized to deal with debentures of this type. In order to understand the nature of a consumer debenture, it is first necessary to define the general definition for any type of debenture. Broadly speaking, a debenture is unsecured debt. This means the debt in question is not obtained by the means of pledging collateral in exchange for the extension of the credit. The debenture is extended on the basis of good faith in the willingness of the borrower to repay the amount that is borrowed. Any form of debenture usually requires that the borrower sign an agreement that outlines the terms and conditions of the financial arrangement. In this case, the agreement is normally referred
