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An Indenture is a legal contract
Contract

A contract is an exchange of promises between two or more parties to do, or refrain from doing, an act which is enforceable in a court of law. It is a binding legal agreement....
 between two parties, particularly for indentured labour
Indentured servant

An indentured servant is a form of debt bondage worker. The laborer is under contract of an employer for usually three to seven years, in exchange for their transportation, food, drink, clothing, lodging and other necessities....
 or a term of apprenticeship
Apprenticeship

Apprenticeship is a system of training a new generation of practitioners of a skill. Apprentices or prot?g?s build their careers from apprenticeships....
 but also for certain land
Real estate

Real estate is a law term that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is fixed in location. transactions. The term comes from the medieval English "indenture of retainer" — a legal contract written in duplicate on the same sheet, with the copies separated by cutting along a jagged (toothed, hence the term "indenture") line so that the teeth of the two parts could later be refitted to confirm authenticity.






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An Indenture is a legal contract
Contract

A contract is an exchange of promises between two or more parties to do, or refrain from doing, an act which is enforceable in a court of law. It is a binding legal agreement....
 between two parties, particularly for indentured labour
Indentured servant

An indentured servant is a form of debt bondage worker. The laborer is under contract of an employer for usually three to seven years, in exchange for their transportation, food, drink, clothing, lodging and other necessities....
 or a term of apprenticeship
Apprenticeship

Apprenticeship is a system of training a new generation of practitioners of a skill. Apprentices or prot?g?s build their careers from apprenticeships....
 but also for certain land
Real estate

Real estate is a law term that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is fixed in location. transactions. The term comes from the medieval English "indenture of retainer" — a legal contract written in duplicate on the same sheet, with the copies separated by cutting along a jagged (toothed, hence the term "indenture") line so that the teeth of the two parts could later be refitted to confirm authenticity. Each party to the deed would then retain a part. When the agreement was made before a court of law a tripartite indenture was made, with the third piece kept at the court. The term is used for any kind of deed
Deed

A deed is a legal instrument used to grant a right. Deeds are part of the broader category of documents under seal. Deeds can be described as contract-like, as they require the mutual agreement of more than one person....
 executed by more than one party, in contrast to a deed poll
Deed poll

A deed poll is a Law document binding only to a single person or several persons acting jointly to express an active intention. It is, strictly speaking, not a contract because it binds only one party and expresses an intention instead of a promise....
 which is made by one individual. In the case of bonds
Bond (finance)

In finance, a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed Maturity ....
, the indenture shows the pledge, promises, representations and covenants of the issuing party.

In England
England

native_name =|conventional_long_name = England|common_name = England|image_flag = Flag of England.svg|image_coat = England COA.svg|symbol_type = Royal Coat of Arms...
 the earliest surviving examples are from the thirteenth century. These are agreements for military service, proving that a paid, contract army was then in existence, although other evidence indicates that the method had already been in use for at least two hundred years. Exchequer
Exchequer

The Exchequer was a part of the governments of England , Scotland, and Northern Ireland that was responsible for the management and collection of revenues....
 records of Henry V
Henry V of England

Henry V was one of the most significant English warrior kings of the 15th century. He was born at Monmouth, Wales, in the tower above the gatehouse of Monmouth Castle, and reigned as King of England from 1413 to 1422....
's French campaign of 1415 (the "Agincourt
Battle of Agincourt

The Battle of Agincourt was an English victory against a much larger French army in the Hundred Years' War. The battle occurred on Friday 25 October 1415 ...
" campaign), including the indentures of all the captains of the army agreeing to provide specified numbers of men and at what cost, may still be read. An Indenture was commonly used as a form of sealed contract or agreement for land and buildings. An example of such a use can be found in the National Archives, where an indenture from ca. 1401 recording the transfer of the manor
Manorialism

Manorialism or Seigneurialism was the organizing principle of rural economy and society widely practiced in Middle Ages western and parts of central Europe....
 of Pinley, Warwickshire
Warwickshire

Warwickshire is a landlocked non-metropolitan county in the West Midlands of England. The county town is Warwick, although the largest town is Nuneaton in the far north of the county....
, is held.

In the early history of the United States, many European immigrants served a period of indentured labour in order to pay the cost of their transportation. This practice was common during the 17th and 18th centuries, where over half of immigrants worked off an average of three years servitude.

Modern usage

Bond Indenture (also trust indenture or deed of trust) is a legal document issued to lenders and describes key terms such as the interest rate
Interest rate

An interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower....
, maturity date, convertibility
Convertible bond

In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing types of companies, usually at some pre-announced ratio....
, pledge, promises, representations, covenants, and other terms of the bond offering. When the Offering Memorandum
Prospectus (finance)

A prospectus is a legal document that institutions and businesses use to describe the securities they are offering for participants and buyers....
 is prepared in advance of marketing a Bond, the indenture will typically be summarised in the 'Description of Notes' section.

See also

  • Capital markets
  • Prospectus
    Prospectus (finance)

    A prospectus is a legal document that institutions and businesses use to describe the securities they are offering for participants and buyers....
  • Securities law
  • Indentured servant
    Indentured servant

    An indentured servant is a form of debt bondage worker. The laborer is under contract of an employer for usually three to seven years, in exchange for their transportation, food, drink, clothing, lodging and other necessities....


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