Indenture is a term that is subject to different meanings. In the context of real property, it refers to a type of real property deed in which two parties agree to continuing mutual obligations. One party may agree to maintain the property, while the other agrees to make periodic payments. Indenture may also refer to a binding contract obligating one person to work for another.
Also, in a financial context, an indenture is a written agreement that describes the borrowers' responsibility to the lenders in a bond or debenture issue. Among other things, the indenture sets the maturity date and the interest rate. It is the formal agreement between a group of bondholders and the debtor as to the terms of the debt. This type of indenture is also refereed to as a bond indenture.
