Finance Glossary

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Trust Indenture Act 1939

Definition:

This Federal Act requires any bond issue over $5,000,000 have an indenture before being offered to the public. An indenture is the laundry list of details about the bond, such as coupon, maturity date, collateral, etc. "The Trust" in the act refers to the requirement that the issuer hire an independent trustee who acts on behalf of the bondholders.