Trust Indenture

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Dictionary Says

Definition of 'Trust Indenture'

An agreement in the bond contract made between a bond issuer and a trustee that represents the bondholder's interests by highlighting the rules and responsibilities that each party must adhere to. It may also indicate where the income stream for the bond is derived from.

Trust indentures may not be included in every bond contract, as some government bonds disclose similar information (the duties and rights of the issuer and bondholders) in a document called the bond resolution.
Investopedia Says

Investopedia explains 'Trust Indenture'

One section of the trust indenture dictates the circumstances and processes surrounding a default. A bondholder should be aware of these situations because understanding the proper sequence of events will allow them to take the proper course of action if a default occurs.

The section on the trustee's role is important as well, as it gives a clear indication of how unforeseen incidents will be dealt with. For example, if a conflict of interest comes up involving the trustee's role as a fiduciary, in certain trust indentures, the issue must be resolved within 90 days, otherwise a new trustee will be necessary.
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'Trust Indenture'

  • Series 7 Study Guide - Securities Markets - Primary Market for ...

    http://www.investopedia.com/exam-guide/series-7/securities-markets/primary-bond-market.asp
    In this section Trust Indenture Act of 1939, primary offering process for bonds,
    syndicate procedures, muni allocation and secondary marketplace. ...

  • Municipal Bond Tips For The Series 7 Exam

    http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
    ... protective covenants). Remember, municipal bonds are not subject to federal
    laws such as the Trust Indenture Act of 1939. Municipal ...

  • An Introduction To Canadian Income Trusts

    http://www.investopedia.com/articles/stocks/08/canadian-income-trust-royalty-trust-canroys.asp
    ... While some trusts are structured with no limits on non-Canadian ownership, others
    have structured their trust indenture in such a way that non-Canadian ...

  • Series 65 Study Guide - Cash Equivalents and Fixed Income ...

    http://www.investopedia.com/exam-guide/series-65/cash-equivalents-fixed/corporate-bonds.asp
    ... Corporate Issuer Requirements: New issues must be registered as a security under
    the Securities Act of 1933 and are subject to the Trust Indenture Act of 1939. ...

  • Series 6 Study Guide - Securities Industry Regulations ...

    http://www.investopedia.com/exam-guide/finra-series-6/securities-industry-regulations/investment-company-definition.asp
    ... Unit Investment Trust (UIT) - created through a trust indenture, contract
    of custodianship or other similar structures. UITs do ...

  • A Primer On Preferred Stocks

    http://www.investopedia.com/articles/stocks/06/preferredstock.asp
    ... With preferreds, if a company has a cash problem, the board of directors can decide
    to withhold preferred dividends; the trust indenture prevents companies ...

  • Series 7 Question of the Week 08/07/2005 | Investopedia

    http://www.investopedia.com/professionals/QuestionoftheWeek/series7/080705.asp
    ... is required? I. A corporate resolution from the board of directors II.
    A copy of the corporation’s trust indenture III. A copy ...

  • Series 7 Study Guide - Portfolio Management - Revenue Bond ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/revenue-bond-analysis.asp
    ... Repayment priority for a flow of funds covenant in a trust indenture for a muni
    would be: Operations and maintenance, Debt Service, Debt Service Reserve and ...

  • Series 7 - Exam Prep | Investopedia

    http://www.investopedia.com/professionals/series7/
    ... following is required? I. A corporate resolution from the board of directors;
    II. A copy of the corporation’s trust indenture; III. ...

  • Series 7 - Exam Prep | Investopedia

    http://www.investopedia.com/professionals/series7/default.asp
    ... following is required? I. A corporate resolution from the board of directors;
    II. A copy of the corporation’s trust indenture; III. ...

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