An indenture is a particular formal contract or deed made between two or more parties. Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance. Indentures were initially used to convey land and for service contracts of seven years. Indentures still exist today. Currently, indentures are used for some apprenticeship contracts in the U.S. For example, bond indentures are indentured trusts that delineate various interests when companies issue bonds in financing agreements. These create assurances for the bonds. For example, a corporate indenture would be a deed describing terms and conditions for debt securities issuance.
[Last updated in April of 2022 by the Wex Definitions Team]