Debenture Stock

Debenture Stock is part of the capital stock of a railway or other company which is lent out on mortgage and secured on a specified part of its property. The deed assigning this property as security is called a debenture (Latin debeo, I owe). Frequently, for convenience of transfer, the debenture stock is represented by a number of debentures, each of relatively small amount (commonly £100). By the Companies' Clauses Acts, 1862, debenture holders who do not receive their interest have power to require the appointment of a receiver (q.v.).