In finance, a debenture is a long-term debt instrument used by governments and large companies to obtain funds. It is similar to a bond except the securitization conditions are different. A debenture is usually unsecured in the sense that there are no liens or pledges on specific assets. It is however, secured by all properties not or else pledged. In the case of bankruptcy debenture holders are considered general creditors.
The benefit of debentures to the issuer is they leave specific assets tangential, and thereby leave them open for subsequent financing.
