In the words of Chilty J., the word 'debenture' refers to a document that has the capability and tendency to do two things : either it could establish and constitute a loan or a debt or acknowledge it. As for the general features of a debenture, they are as follows:
On a usual basis, a debenture is in the form of a certificate that is issued under the seal of a company or on behalf of it. Furthermore as mentioned before a debenture is a clarion acknowledgement and recognition about the fact that a loan has been taken and needs to be paid back. A debenture also signifies very clearly as to what amount of the loan would be paid back on which particular date leaving no qualms behind. Moreover a debenture ensures the payment of interest until the principal sum is completely paid back. Last but not the least, a debenture also creates a charge on the prospect of the undertaking of the company or sometimes on any class of its assets.
On a usual basis, a debenture is in the form of a certificate that is issued under the seal of a company or on behalf of it. Furthermore as mentioned before a debenture is a clarion acknowledgement and recognition about the fact that a loan has been taken and needs to be paid back. A debenture also signifies very clearly as to what amount of the loan would be paid back on which particular date leaving no qualms behind. Moreover a debenture ensures the payment of interest until the principal sum is completely paid back. Last but not the least, a debenture also creates a charge on the prospect of the undertaking of the company or sometimes on any class of its assets.