Trust Indenture

A trust indenture is a legal document that creates a trust and sets out the terms of the trust. It is used in connection with the issuance of bonds, and it establishes a trustee who is responsible for holding the bonds and paying the interest and principal to the bondholders.

The trust indenture typically includes the following provisions:

• The name of the trust and the purpose of the trust.
• The names of the trustee and the bondholders.
• The terms of the bonds, including the interest rate, maturity date, and call provisions.
• The rights and obligations of the trustee and the bondholders.
• The procedures for amending the trust indenture.

The trust indenture is an important document because it establishes the rights and obligations of the parties involved in the bond issuance. It is a contract that all parties must agree to before the bonds can be issued.

The trust indenture is typically drafted by the bond issuer's attorneys and is reviewed by the bondholders' attorneys before it is finalized. Once it is finalized, it is filed with the Securities and Exchange Commission (SEC).

The trust indenture is a public document that is available to anyone who wants to review it. It can be found on the SEC's website or by contacting the bond issuer.

Trust indentures are important because they provide investors with a clear understanding of the terms of the bond issuance. They also help to protect investors by setting out the rights and obligations of the trustee and the bondholders.