Legal Definitions - trust indenture

A trust indenture is a legal document that outlines the terms and conditions of a bond or debt agreement between a borrower and a lender. It is a type of indenture, which is a written agreement between two parties.

For example, a company may issue bonds to raise money for a new project. The trust indenture would specify the interest rate, repayment terms, and other details of the bond agreement. It would also establish a trustee, who would act as a neutral third party to ensure that the terms of the agreement are followed.

The purpose of a trust indenture is to protect the interests of both the borrower and the lender. By establishing clear terms and appointing a trustee to oversee the agreement, both parties can have confidence that the agreement will be honored.